Oil prices slide after large U.S. inventory build rekindles glut worries

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Crude oil futures fell Wednesday, with a large weekly increase in U.S. crude inventories adding to downside pressure in a market already concerned about weaker demand and oversupply.

U.S. commercial crude oil stocks excluding the Strategic Petroleum Reserve rose by 5.2 million barrels in the week ended October 31, the most since July, the Energy Information Administration reported, compared to forecasts for a small decline and offsetting much of the previous week's draw.

However, signs of stronger than expected gasoline demand limited oil price losses, as the EIA reported gasoline inventories fell by a larger than expected 4.7 million barrels, and distillate fuel stocks fell by 643,000 barrels; both readings were down for the fifth consecutive week.

Canada's Prime Minister Carney unveiled a budget plan on Tuesday that signaled changes to its climate change policies that could, under specific circumstances, lead to the elimination of an emissions cap [https://www.reuters.com/sustainability/cop/canada-could-eliminate-oil-gas-emissions-cap-budget-plan-says-2025-11-04/] on the domestic oil and gas industry, adding to concerns over a potential supply glut.

Also, Russia's Black Sea port of Tuapse reportedly has suspended fuel exports, while its oil refinery halted crude processing after Sunday's Ukrainian drone attacks on its infrastructure.

While geopolitical risks remain and could reverse the downward trend, the diminishing impact of U.S. sanctions on Russian oil companies has reduced supply-side tension, "a factor that had previously been bullish," XS.com analyst Antonio Di Giacomo said in a note.

Front-month Nymex crude (CL1:COM [https://seekingalpha.com/symbol/CL1:COM]) for December delivery closed -1.6% to $59.60/bbl, front-month Brent crude (CO1:COM [https://seekingalpha.com/symbol/CO1:COM]) for January delivery finished -1.4% to $63.52/bbl, and U.S. natural gas futures (NG1:COM [https://seekingalpha.com/symbol/NG1:COM]) pulled back after five straight sessions of gains, as weather forecasts signal a shift toward milder weather after next week’s expected cold snap, with front-month Nymex December natural gas ended -2.5% to $4.232/MMBtu.

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