Crude Oil Falls to Two-Week Low Due to Falling Demand

Crude oil and gasoline prices ended mixed on Thursday. Oil slipped to a two-week low amid demand concerns and gasoline rallying on tight supply conditions.

Price Movements

• WTI Crude (December): Closed at $59.60, down $0.96 (-1.59%)
• Brent Crude: Fell to $63.52 earlier this week

Crude prices faced pressure from Saudi Arabia’s decision to cut its Arab Light crude price for Asian buyers to an 11-month low for December delivery.

Market Drivers

Saudi Aramco reduced its crude price by $1.20 per barrel, signalling weaker demand outlook. Additional bearish sentiment came from U.S. EIA data showing an unexpected build in crude inventories, while gasoline inventories dropped to an 11-year low, supporting gasoline prices.

Supply and Geopolitical Factors

• OPEC+ Output: Members will raise production by 137,000 bpd in December and pause hikes in Q1 2026 amid surplus concerns.
• Global Surplus Forecast: IEA projects a record surplus of 4 million bpd for 2026.
• Kazakhstan Output: Down 10% to 1.69 million bpd, still above OPEC+ quota.
• Russia Update: Fuel exports suspended at Tuapse port after refinery shutdown due to drone attacks.

Strength in the crack spread, which hit a 1.5-year high, provided some support for crude as refiners increased purchases to boost gasoline and distillate output.

Read More: India’s Energy Demand Expected to Grow 5% with 7% GDP Expansion.

Conclusion

Crude oil prices declined on Thursday as Saudi price cuts and inventory builds reinforced demand concerns, while gasoline surged on tight supply. Market attention now shifts to OPEC+ compliance and geopolitical developments impacting global energy flows.

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