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Oil prices slipped on Thursday as renewed concerns over excess supply outweighed modest demand growth, following Saudi Arabia’s decision to lower crude prices for December deliveries. A selloff in global equities added further pressure to the petroleum complex.

Brent eased by 12 cents, or 0.22%, to settle at $63.38 a barrel.

WTI declined 7 cents, or 0.29%, to $59.43 a barrel.

Market sentiment remained dominated by supply-side factors. Rising output from both OPEC+ and non-OPEC producers, alongside Saudi Arabia’s price reductions for Asian customers, reinforced expectations of abundant near-term availability.

On the demand front, global oil consumption rose by 850,000 barrels per day (bpd) in the year to 4 November 2025, slightly below JPMorgan’s projection of 900,000 bpd. Seasonal refinery maintenance and subdued travel activity continued to cap crude processing rates, curbing demand momentum.

Meanwhile, Western sanctions have posed operational challenges for Russian producers, particularly Lukoil’s international operations, though the overall impact on global supply remains limited. Analysts said investors were adopting a cautious stance, awaiting clearer signals of potential disruptions before shifting positions.

Looking ahead, Capital Economics expects further downside for oil prices, forecasting Brent to average $60 a barrel by the end of 2025 and $50 by late 2026, citing persistent oversupply and tepid demand growth as the main drags on the market.

Written: Aiman Haikal