Oil flat as weak demand, oil glut weigh on market

Oil prices were largely flat early on Thursday, after settling at two-week lows in the previous session as pressure from weaker demand and a global oil glut continued to weigh on the market.

Brent crude futures were up 2 cents, or 0.03%, to $63.54 a barrel at 0127 GMT, while U.S. West Texas Intermediate futures were flat at $59.60.

Year-to-date through November 4, global oil demand has risen 850,000 barrels per day, below growth of 900,000 bpd projected earlier by J.P. Morgan, the bank said in a client note.


"High-frequency indicators suggest that U.S. oil consumption remains subdued," the note said, pointing to weak travel activity and lower container shipments.

In the previous session, oil prices fell after the U.S. Energy Information Administration said U.S. crude stocks rose by 5.2 million barrels to 421.2 million barrels last week, compared with expectations for a 603,000-barrel rise. [EIA/S]

"We think that downward pressure on oil prices will prevail, supporting our below-consensus forecast of $60 per barrel by end-25 and $50 per barrel by end-26," Capital Economics said in a note.

Global oil prices fell a third straight month in October on fears of oversupply as the Organization of the Petroleum Exporting Countries and its allies increased output while production from non-OPEC producers is also still growing.