DTN Oil Update
Oil Sees 3-Day Drop on Ample Supply Outlook
SECAUCUS, N.J. (DTN) -- Crude oil futures edged lower on Thursday, Nov. 6, for the third consecutive trading session on expectations of ample supplies and weak demand fundamentals.
Expectations of higher global supply is putting downward pressure in the oil markets after eight OPEC+ nations decided to add 137,000 bpd output for a third straight month in December, over the weekend. However, OPEC+ recently announced that it would refrain from hikes in the first quarter of 2026. Since April, the group has added 2.9 million bpd to supply.
The bearish sentiment was also driven by Saudi Aramco's decision to significantly cut its Official Selling Prices for December crude deliveries, dropping the key Arab Light grade to Asia by $1.20 bbl from November's level. Medium and heavy grades faced even steeper reductions of $1.40 bbl.
The cuts reflect Saudi Aramco's view that the Asian market is already oversupplied with crude and that softer selling prices are the key to boosting demand, traders said.
The NYMEX WTI contract for December delivery settled down $0.17 at $59.43 bbl. ICE Brent for January delivery eased $0.14 to $63.38 bbl. The week-to-date loss of 2.6% for WTI and Brent was the highest in a month.
Refined product prices bucked the lower trend in crude. December RBOB gasoline futures advanced $0.0524 to $1.9617 gallon, while front-month ULSD futures rose $0.0611 to $2.436 gallon.
The U.S. Dollar Index fell by 0.429 points, settling at 99.63 against a basket of foreign currencies. This drop occurred amid economic uncertainties stemming from the federal government shutdown, which began on Oct. 1 and is now the longest in U.S. history.
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