Oil prices inched higher on Friday, November 7, 2025, but remained on course for a second consecutive weekly decline, following three days of losses driven by mounting concerns over excess supply and weakening demand in the United States.
Brent crude futures rose by 41 cents, or 0.65%, to $63.79 per barrel as of 13:57 GMT, while U.S. West Texas Intermediate (WTI) gained 46 cents, or 0.77%, to $59.89 per barrel.
Despite Friday’s uptick, both benchmarks are expected to close the week roughly 2% lower, pressured by rising production among leading global oil exporters.
“The market continues to weigh a rising oil surplus against mixed macro,”
said SEB analyst Ole Hvalbye.
Analysts say the sell-off accelerated earlier this week after the U.S. reported a larger-than-expected crude inventory build of 5.2 million barrels, stoking fears of oversupply.
“An unexpected U.S. inventory build of 5.2 million barrels reignited oversupply fears this week,”
said IG Markets analyst Tony Sycamore.
The Energy Information Administration (EIA) reported that U.S. crude stocks rose due to increased imports and reduced refining activity, while gasoline and distillate inventories declined.
Adding to bearish sentiment, concerns over the potential economic fallout from the longest U.S. government shutdown in history weighed on investor confidence. The Trump administration has ordered flight reductions at major airports amid a shortage of air traffic controllers, while private data pointed to a softer U.S. labor market in October.
On the supply side, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, agreed on Sunday to make a modest production increase in December. The group, however, decided to pause further hikes in the first quarter of next year, signaling caution over a potential global supply glut.
In response to the well-supplied market, Saudi Arabia, the world’s top oil exporter, announced steep price cuts for its December crude shipments to Asian buyers.
Meanwhile, European and U.S. sanctions on Russia and Iran have disrupted exports to major importers China and India, offering limited support for global prices.
Data from Chinese customs showed that China’s crude imports rose 2.3% month-on-month in October and 8.2% year-on-year, totaling 48.36 million tons, as refineries maintained high utilization rates.
“China kept importing elevated amounts of crude in October,” said UBS analyst Giovanni Staunovo.
“That move keeps those barrels away from the OECD, where inventories remain low.”
In corporate developments, Swiss commodities trader Gunvor announced Thursday that it had withdrawn its proposal to acquire the foreign assets of Russian energy giant Lukoil, after the U.S. Treasury labeled the company a “puppet” of Moscow and signaled opposition to the deal.
“Gunvor scrapping its Lukoil assets purchase suggests the U.S. is maintaining its maximum pressure campaign against Russia, and potential strict enforcement of sanctions on Rosneft and Lukoil,”
said Vandana Hari of Vanda Insights.
