Washington: Oil prices continued to decline on Thursday as fresh data from the United States and a revised outlook from OPEC pointed to a weaker market in the coming months. Traders said the latest signals suggest that global supply may stay ahead of demand, adding pressure on crude benchmarks that have already been sliding this week.

Brent crude was trading near 62 dollars per barrel, while West Texas Intermediate slipped to around 58 dollars. The fall followed a report from the American Petroleum Institute, which showed a rise of 1.3 million barrels in US crude inventories for the week ending November 7. The build in stocks indicates that consumption has not kept pace with supply, raising concerns of a near term surplus.

Adding to the pressure, OPEC in its monthly report shifted its view for 2026 from a possible supply deficit to a surplus. The group expects higher production from OPEC plus members, including Russia, along with steady output from non OPEC countries. The United States has also revised its own estimates, with the Energy Information Administration predicting stronger US production and a continued rise in global oil stocks through next year.

Analysts said the change in forecasts has softened market sentiment, even though there have been no major disruptions or shocks in supply. Some market watchers believe prices may stabilise around current levels, while others warn that any slowdown in global demand could push them lower.

Despite the decline, traders noted that temporary supply issues or geopolitical tensions could still tighten the market. For now, the outlook remains cautious, with both producers and consumers watching demand trends closely as the year draws to a close.