Oil prices edge up after two-week lows amid weak demand, rising stockpiles

Oil markets showed little movement early on Thursday as traders weighed concerns over sluggish demand and swelling crude inventories that have dragged prices down for three consecutive months.

Brent crude inched up just two cents to trade at $63.54 a barrel by 0127 GMT, while US West Texas Intermediate (WTI) remained flat at $59.60. The minimal change followed a sharp decline in the previous session, when prices touched their lowest levels in two weeks.

Global demand remains weak

According to a note from J.P. Morgan, global oil demand has risen by 850,000 barrels per day so far this year, slightly below the bank’s earlier projection of 900,000 barrels per day. The report said that “high-frequency indicators” in the United States point to soft consumption trends, including fewer road trips and reduced shipping activity.

Market sentiment was further dampened after the US Energy Information Administration reported a much larger-than-expected rise in crude inventories. US stockpiles climbed by 5.2 million barrels last week to reach 421.2 million barrels, compared with forecasts of a modest 600,000-barrel increase.

Analysts see more pressure ahead

Analysts warn that the current market softness could persist into next year as supply growth continues to outpace demand recovery. Capital Economics said in a note that it expects oil prices to stay under pressure, predicting an average of around $60 a barrel by the end of 2025 and $50 by the end of 2026.

The global oversupply issue has been building for months. Production increases from the Organisation of the Petroleum Exporting Countries (OPEC) and its allies have added to existing stockpiles, while non-OPEC producers have also maintained high output levels.

October marked the third straight month of falling oil prices, reflecting growing investor concern that the market is slipping into another surplus cycle. Unless consumption rebounds strongly in the coming months, traders say, crude prices may continue hovering near current levels despite the occasional uptick.