Oil Prices Drop Amid Market Selloff and Rising U.S. Crude Inventories

BEIJING, Nov 5: Oil prices extended losses on Wednesday as a global selloff in financial markets and rising U.S. crude stockpiles reignited concerns over economic growth and energy demand.

Brent crude futures fell 36 cents, or 0.56%, to US$64.08 per barrel by 0221 GMT, while U.S. West Texas Intermediate (WTI) crude declined 40 cents, or 0.66%, to US$60.16. Both benchmarks continued to slide following Tuesday’s downturn.

The decline came amid a broader slump in equity markets, with Asian shares tracking Wall Street’s overnight losses as investors reassessed stretched valuations, particularly in technology and artificial intelligence-linked stocks.

A stronger U.S. dollar added further pressure, making dollar-priced oil more expensive for holders of other currencies.
“Crude oil is trading lower as risk sentiment shifted sharply negative, boosting the safe-haven U.S. dollar, both of which weighed on oil prices,” said IG market analyst Tony Sycamore.

Market sentiment was also hit by data from the American Petroleum Institute (API), which reported that U.S. crude inventories rose by 6.52 million barrels for the week ended October 31, well above expectations.

On the supply front, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) announced plans to raise output by 137,000 barrels per day in December. The group said it would pause additional increases in early 2026, though analysts at LSEG noted that the pause is “unlikely to provide meaningful support” to prices in the near term.

In October, OPEC’s total output rose by just 30,000 barrels per day as production gains in some member countries were offset by declines in Nigeria, Libya, and Venezuela.

The combination of a weaker demand outlook, a stronger dollar, and supply growth has kept oil prices under sustained downward pressure, raising concerns over the sector’s near-term recovery.