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Oil Slides as OPEC+ Sees 2026 Market in Balance, Reviving Oversupply Fears

OPEC+'s shift to a balanced 2026 outlook sharpened concerns about near-term oversupply.

Overview

  • Brent and WTI fell roughly 3% to 4% in their sharpest single-day drop in weeks as traders repriced near-term supply risks.
  • OPEC’s monthly report projected global supply roughly matching demand in 2026 after prior deficit forecasts, reflecting about 2.9 million bpd in target increases since April.
  • The producer group signaled a pause in planned output increases in the first quarter of 2026 after an October reduction of 73,000 bpd led by Kazakhstan.
  • The IEA’s World Energy Outlook said oil and gas demand could keep growing to 2050 to around 113 million bpd, yet it expects global oil inventories to rise by about 2.6 million barrels in 2026.
  • Analysts cited unsold cargoes, a third‑quarter surplus near 500,000 bpd, soft demand in parts of Asia, and U.S. uncertainty, while oil majors’ shares fell with Chevron, ConocoPhillips, Exxon, BP, Shell, and Equinor lower.