London: Global oil prices remained largely unchanged this week as weak demand and growing concerns over an oversupplied market continued to pressure the energy sector. Brent crude hovered around $63.70 per barrel, while U.S. West Texas Intermediate (WTI) traded near $59.80, extending a months-long trend of stagnant prices.

Analysts say that despite some optimism from producers, the market is still struggling to find balance. Data from J.P. Morgan shows global oil demand growth this year has slowed to about 850,000 barrels per day, slightly below earlier projections. At the same time, U.S. crude inventories rose by more than 5 million barrels last week, signaling that consumption remains weaker than expected.

While geopolitical factors have added some temporary support particularly sanctions imposed on major Russian oil firms broader fundamentals remain bearish. The International Energy Agency recently projected that global oil demand will peak by 2029, after which it is expected to decline steadily as clean energy transitions accelerate.

Adding to the concern, the World Bank estimates that global oil supply currently exceeds demand by nearly 2.7 million barrels per day, and that surplus could grow to about 4 million barrels by next year if production levels are not adjusted.

In response, the OPEC+ alliance has announced it will raise production modestly by 137,000 barrels per day through December 2025 but pause any further increases in early 2026. The move is seen as a cautious attempt to stabilize the market and prevent prices from sliding further.

Despite these efforts, analysts at Capital Economics expect oil prices to stay under pressure, forecasting Brent crude could drop to around $60 per barrel by the end of 2025 and possibly reach $50 by late 2026 if demand remains weak.

Experts note that most of the global demand slowdown is coming from developed economies, where energy efficiency and the shift toward electric vehicles are accelerating. Emerging markets in Asia, particularly India, are expected to remain the main sources of oil demand growth in the coming years.

For oil-exporting nations and energy companies, the prospect of prolonged low prices poses significant challenges.

Reduced revenue could strain government budgets and force producers to reassess investment plans.

Still, some analysts believe the cautious stance by OPEC+ could help cushion the market from a sharper fall in prices in the short term.

Overall, the oil market remains on uncertain footing caught between the slowing pace of global demand and the persistent oversupply that continues to shape its outlook heading into 2026.