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Oil Extends Slide After Aramco Cut and Surprise U.S. Inventory Build

Fresh price cuts to Asian buyers signal softer demand, reinforcing worries about a near-term surplus.

Overview

  • Brent traded near $63 and WTI near $59, setting up a second weekly loss on oversupply worries.
  • Saudi Aramco reduced its December Arab Light price to Asia by $1.20 a barrel to an 11‑month low, a clear signal of weaker regional demand.
  • U.S. crude stocks unexpectedly rose by about 5.2 million barrels as refinery runs lagged, with national output holding near record highs.
  • OPEC+ approved a 137,000 bpd increase for December and flagged a pause in early 2026, keeping focus on supply growth and surplus risks highlighted by the IEA’s 2026 outlook.
  • Tight U.S. gasoline inventories at an 11‑year low and disruptions to Russian fuel flows have offered only brief support to crude prices.