Oil prices slump as global stockpiles surge and OPEC flags a 2026 glut

Crude oil prices traded defensively this week as bearish fundamentals overshadowed short-term risk catalysts.

While geopolitical tensions and the end of the U.S. government shutdown offered fleeting support, the market remained focused on rising global inventories, shifting supply-demand expectations from OPEC and the IEA, and a broader sense that supply continues to outpace demand.

West Texas Intermediate (WTI) futures fell sharply midweek before stabilizing at $58.12, a level that may act as psychological support in the short term.

Large U.S. Inventory Build Pressures Prices

The most immediate bearish catalyst came from U.S. stockpile data. The Energy Information Administration (EIA) reported a massive 6.4 million barrel build in domestic crude inventories for the week ending November 7, far exceeding analyst expectations of a 1.96 million barrel increase. The American Petroleum Institute (API) had earlier flagged a 1.3 million barrel build, but the EIA’s number confirmed growing concerns about a supply glut.

The data hit the market just as crude attempted to stabilize above recent lows, triggering a sharp sell-off that pushed WTI more than $2 lower on Wednesday. The inventory build also highlighted a broader trend across global storage hubs, with reported increases in Europe, Singapore, and the UAE’s Fujairah, signaling barrels are increasingly struggling to find end demand.

OPEC and IEA Acknowledge 2026 Supply Surplus.