Weekly Crude Oil Review: WTI futures slide 15% in Nov-26

WTI crude oil futures fell near two and half month low under $84 per barrel following signs of easing tensions between the US and Iran. US President Donald Trump reportedly suggested that additional military strikes against Iran may no longer be necessary, fuelling optimism for a potential diplomatic settlement. However, uncertainty persists as Iran demands relief from US sanctions and the naval blockade before agreeing to peace talks. Crude oil inventories in the United States saw an increase of 4.7 million barrels during the week ending November 6, according to new data from the U.S. Energy Information Administration (EIA). The increase brings commercial stockpiles to 414.4 million barrels, according to government data, which is now 4% below the five-year average for this time of year. The EIA?s data release follows API?s figures that were released a day earlier, which reported that crude oil inventories had risen by 9.0 million barrels in the period. For total motor gasoline, the EIA reported that inventories increased 1.8 million barrels after shrinking by 200,000 barrels in the week prior. EIA has separately noted that global oil inventories fell by an average of 1.2 million b/d in the third quarter of 2026 (3Q26) but will begin building in 4Q26. It stated further that although global oil production will outpace consumption in 4Q26, the heightened risk of supply disruptions and longer shipping routes will limit the near-term impact of global stock builds until geopolitical risk dissipates and inventories begin to return closer to pre-conflict levels. WTI Crude oil marked second weekly decline, giving up around 2.10% and is down around 15% this month.

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