Oil Prices Post Third Weekly Loss as Glut Worries Mount

Oil Prices Post Third Weekly Loss as Glut Worries Mount

SECAUCUS, NJ (DTN) — Oil prices edged higher Friday but still posted a third straight week of losses on persistent worries about crude oversupply.

Fewer supply risks from the relative calm in the Middle East, which pumps about a third of global crude output, had also weighed on oil markets this week, along with U.S. President Donald Trump’s plan to meet Russian leader Vladimir Putin to discuss an end to the Ukraine war.

The NYMEX WTI contract for November delivery settled up $0.08 at $57.54 bbl, while ICE Brent for December delivery closed up $0.23 at $61.29.

November RBOB gasoline futures advanced $0.0231 to $1.8348 gallon, while front-month ULSD futures slipped $0.0277 to $2.1812 gallon.

The U.S. Dollar Index edged higher by 0.098 points to 98.19 against a basket of foreign currencies.

Concerns that oil drillers were putting out more barrels than immediately needed by the market grew after the U.S. Energy Information Administration (EIA) reported on Thursday (10/16) that domestic inventories of commercial crude oil rose by 3.5 million bbl to 423.8 million bbl for the week ended October 10.

That build came on top of two prior weekly additions of 3.7 million bpd and 1.8 million bpd.

The International Energy Agency has, meanwhile, warned of a potential record oversupply of 4 million bpd in 2026.

Refiners entering a delayed maintenance season could put more downside pressure in the near term on the demand for U.S. crude, EIA data indicated. Crude oil throughput function of refinery runs slumped by 1.167 million bpd to a 22-month low 15.13 million bpd for the week ended October 10, the data showed.

Softening backwardation in WTI’s calendar spreads also reflects easing near-term inventory tightness.

On Friday, the prompt-month WTI contract flipped to a discount to oil for delivery seven months out for the first time since January 2024. The twelve-month spread has similarly fallen into negative territory this week for the first time since May.