Hot Commodities: Crude tanks around 4% yesterday, EIA says Brent oil to average $54 per barrel in first quarter of 2026

Crude oil futures tanked yesterday on oversupply fears. WTI Crude and Brent Crude lost around 4% each to test three-week low after the US Energy Information Administration or EIA stated in a monthly update for November that it expects global oil inventories to continue to rise through 2026. The EIA has stated that Brent crude oil spot prices averaged $65 per barrel (b) in October, $3/b less than the average in September and $15/b less than the average in January of this year. Crude oil prices fell in October as growing supplies of crude oil outweighed uncertainties related to the effect of new rounds of sanctions on Russia?s oil sector. It forecast that growing global oil production and the transition to the low point of seasonal demand over the winter will accelerate the growth in global oil inventories, causing crude oil prices to continue to fall in the coming months. EIA forecasts that the Brent price will drop to an average of $54/b in the first quarter of 2026 (1Q26) and will average $55/b in 2026. Although we expect prices to fall through the early part of 2026, our 2026 Brent outlook is $3/b higher than we forecast last month, EIA noted.

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