Oil Prices Attempt to Stabilize as Brent Holds Above $62 Amid Renewed Supply Surplus Fears

By Naija Enquirer Staff

Global oil prices are seeing marginal fluctuations on Thursday, attempting to stabilize after suffering sharp declines in the previous session driven by a private report showing rising U.S. crude inventories and a bearish long-term forecast from OPEC.

As of the latest market checks, Brent crude is trading around $62.47 a barrel, and U.S. West Texas Intermediate (WTI) crude is near $58.40 a barrel. The prices remain pressured by the sentiment that global supply is more than sufficient to meet current demand.

This bearish outlook was solidified by the U.S. Energy Information Administration (EIA), which in its latest Short-Term Energy Outlook, reinforced the view of a growing supply surplus. The EIA projects that global oil inventories will continue to rise through 2026 as production increases faster than demand for petroleum fuels, a scenario that is expected to keep downward pressure on prices.

The earlier price slide was triggered when market sources, citing American Petroleum Institute (API) figures, reported a rise of 1.3 million barrels in U.S. crude stockpiles. The subsequent revision by the Organization of the Petroleum Exporting Countries (OPEC), suggesting that global oil supplies will slightly exceed demand in 2026, further signaled the possibility of a supply glut in the coming years.

Despite the current pressure, market analysts believe strong support exists near the $60 per barrel level, particularly given the potential for short-term disruption to Russian export flows when stricter sanctions take effect. However, the prevailing macroeconomic data, coupled with anticipated record-high U.S. oil production this year, will likely continue to cap any significant price rallies in the short to medium term.