Oil falls on supply glut concerns

Oil drilling rigs

Oil prices declined today, Nov. 14, amid concerns over global supply amid weak demand and a recent rise in the dollar.

International benchmark Brent crude was trading down 0.58% at $71.86 a barrel, at 09:10 am Makkah time. West Texas Intermediate (WTI) crude fell 0.67% to $67.97 a barrel.

This came after the US Energy Information Administration (EIA) raised its expectations for the country's average oil production this year to 13.2 million barrels per day (bpd), an increase of 300,000 barrels per day over last year bpd, compared to its previous estimate of 13.22 million bpd.

This is in addition to the slight increase in EIA’s global production forecast this year to 102.6 million bpd from 102.5 million barrels, and in 2025 to 104.7 million barrels from 104.5 million bpd.

Meanwhile, OPEC, in its monthly report issued this week, lowered its expectations for global oil demand growth in 2024 and 2025 due to weak demand in China, India and other countries.

Moreover, the American Petroleum Institute said in a report issued on Nov. 13 that its estimates indicate a decrease in oil inventories last week by 770,000 barrels, while gasoline inventories rose by 312,000 barrels, and distillates by about 1.14 million barrels.

Today, investors are awaiting the release of official data on US inventories from the EIA, as well as the monthly report from the International Energy Agency.