Friday 07/November/2025 – 10:31 AM
Crude oil prices began trading today, Friday, with a slight increase, in a repetition of the false scenario that prevailed in recent sessions, where trading begins on the rise and then the entire gain dissipates at the end of the session, a clear indication that traders have already priced in all the current factors, and that the incentive to rise is missing.
Oil is heading to record its second week of losses.. Excess supply nullifies the effect of the morning rise
Oil prices are heading for a second week of consecutive losses, and these declines are driven by mounting fears of a global oversupply accompanied by a noticeable slowdown in demand, especially in the United States. The risk premium that markets were assessing for the European and American sanctions imposed on Russia has also disappeared.
By 4:30 a.m. GMT, Brent crude futures for January delivery rose by about $0.3, reaching levels near $63.6 per barrel, and US West Texas Intermediate crude futures for December delivery increased by about $0.4, approaching $59.70 per barrel.
It is noteworthy that the end of yesterday’s trading witnessed a decline, as Brent crude lost $0.14, recording $63.38 per barrel, while US crude fell $0.17 to settle at $59.43.
The two benchmark crude oils are heading to suffer a decline of more than 2% for the second week in a row, in light of major producers around the world increasing production, which increases pressure on prices with markets pricing in a scenario of oversupply and weak demand.
Data show that crude oil prices have fallen by about 6% over the past three months, and have declined by nearly 17% since the beginning of the year. They have even lost nearly a quarter of their value since the arrival of US President Donald Trump, compared to the highest level recorded this year.
In a sign that reflects these concerns, the countries of the Organization of the Petroleum Exporting Countries and the OPEC alliance decided on Sunday to increase production slightly in December, but in return they temporarily suspended the increases scheduled for the first quarter of next year, for fear of increasing the surplus supply.
Saudi Arabia, the largest exporter, also sharply reduced its crude prices for Asian buyers in December, which confirms the abundance of supplies available in the market.
This bleak outlook on supply and demand and markets’ assessment of rising inventories led to global oil prices falling for the third straight month in October.
