Market Insights > Daily Market Analysis New

6 November 2025,06:11

Daily Market Analysis New

Crude Oil Slides to Two-Week Lows as Oversupply Fears Weigh on Market

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6 November 2025, 06:11

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Key Takeaways:

*Oil prices hit two-week lows as rising U.S. inventories and stronger OPEC+ output sparked oversupply concerns.

*U.S. crude stocks increased by 5.2 million barrels, far exceeding expectations of a 0.6 million barrel rise.

*Saudi Arabia cut December crude prices for Asian buyers, signaling pressure from abundant supply.

Market Summary:

Crude oil prices extended losses this week, settling at their lowest level in two weeks amid growing concerns of a potential global supply glut. According to data from the U.S. Energy Information Administration (EIA), U.S. crude inventories rose by 5.2 million barrels last week to 421.2 million, sharply above analysts’ expectations for a modest 603,000-barrel increase. The data reinforced market fears that demand growth may not be strong enough to absorb the expanding supply.

At the same time, global oil prices have declined for three consecutive months, pressured by rising production from both OPEC+ and non-OPEC suppliers. The Organization of the Petroleum Exporting Countries and its allies have collectively raised output targets by about 2.9 million barrels per day since April — equivalent to nearly 2.7% of global supply. While the alliance recently slowed its pace of expansion, the elevated production levels continue to weigh on sentiment.

Adding further pressure, Saudi Arabia has sharply reduced the official selling prices for its December crude exports to Asia, reflecting weaker regional demand and the impact of rising inventories. The move highlights growing competition among major producers in an already well-supplied market.

Beyond supply dynamics, macroeconomic factors also contributed to the downside. The U.S. Federal Reserve and other major central banks are signaling a potential return to tighter monetary conditions, with rate cut expectations being pushed back into 2025. Such tightening measures could dampen global economic activity and, in turn, energy demand.

Overall, the combination of ample supply, cautious demand outlook, and tighter financial conditions has reinforced a bearish tone across the oil market, with traders remaining defensive ahead of upcoming OPEC+ policy guidance.

Technical Analysis

USOIL_2025-11-06_14-08-45_f6a57 – PU Prime | More Than Trading

Crude Oil, H4:

Crude oil prices have broken below the key triangle pattern and the short-term support level at $59.90, confirming a bearish continuation setup. The RSI remains below the midline, suggesting that downward momentum remains dominant. If selling pressure persists, the commodity may extend losses toward the next support zone at $57.85, with a further decline potentially testing $55.50.

However, should bearish momentum ease and a technical rebound occur, prices could re-test resistance at $59.90, followed by a stronger cap near $62.80. Overall, the short-term bias remains tilted to the downside unless prices reclaim key resistance levels.

Resistance Levels: $59.90, $62.80

Support Levels: $57.85, $55.50

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