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Oil Prices Slip Nearly 1 Percent Amid Supply Glut and Cautious Demand Recovery
13 November 2025
Key Highlights
Brent crude slipped 0.9% to $64.56 per barrel after a 1.7% gain the previous day.
Global inventories continued to rise, deepening supply concerns.
U.S. shutdown resolution lifted sentiment but demand recovery remains slow.
OPEC+ output stays elevated, keeping the market under pressure.
Traders monitor U.S. stockpile data and potential production cuts.
Supply Concerns Keep Oil Under Pressure
Oil prices softened midweek as rising inventories and consistent production from OPEC+ members reinforced fears of a global supply glut.Brent crude futures fell by 60 cents to $64.56 per barrel, partially giving back Tuesday’s gains.
Analysts noted that refinery maintenance season in the U.S. and Europe is limiting crude demand temporarily. The U.S. Energy Information Administration (EIA) also reported another increase in crude stockpiles, signaling that supply may continue to outpace consumption in the near term.
U.S. Shutdown End Offers Mild Relief
On the demand front, there was a modest boost to sentiment after news that the U.S. government shutdown the longest in history -was nearing its end.The reopening of federal operations is expected to gradually improve fuel consumption, particularly in transportation and industrial sectors, which had slowed during the closure.
However, experts warn that this recovery might remain uneven, citing global trade concerns and China’s weak manufacturing data as potential drags on overall demand growth.
Global Energy Context
Oil markets remain sensitive to changes in OPEC+ production, U.S. shale output, and broader geopolitical trends.Traders are watching upcoming U.S. inventory reports for clues on near-term direction and any signals from major producers about output restraint.
The International Monetary Fund (IMF) recently highlighted softer global growth expectations, further dampening the outlook for energy demand. Even so, some analysts remain optimistic that emerging markets could support modest consumption gains later this year.
Final Word
Oil prices are currently balancing between strong supply and fragile demand.While the end of the U.S. shutdown has improved sentiment slightly, lasting price stability will depend on coordinated production controls and a sustained recovery in global consumption over the coming months.
