Oil slips as U.S. stockpiles climb, demand signals fade

November 19, 2025 (MLN): Oil prices slipped on Wednesday after an industry report revealed an increase in U.S. crude and fuel stockpiles, deepening worries that global supply is outpacing demand.

Brent crude futures went down by $1.05, or 1.65%, to $64.74 per barrel.

West Texas Intermediate (WTI) crude futures decreased by $0.10, or 0.16%, to $60.64 per barrel by [10:27 am] PST.

U.S. crude and fuel inventories climbed last week, according to market sources who cited data from the American Petroleum Institute (API) late Tuesday.

The API figures showed a 4.45 million-barrel increase in crude stocks for the week ending Nov 14, alongside a 1.55m-barrel rise in gasoline supplies and a 577,000-barrel build in distillate inventories reinforcing concerns about softening demand.

A report from Chinese brokerage Haitong Futures noted that the larger-than-expected stock builds “signal weak demand and imply a bearish outlook for oil prices,” adding to downward pressure on the market.

Oil prices had firmed on Tuesday as traders assessed the potential impact of fresh U.S. sanctions on Russian oil exports, as well as escalating Ukrainian strikes on Russian refineries and export terminals developments that have heightened fears of supply disruptions.

However, analysts continue to warn that global production remains higher than current consumption levels, limiting upside momentum in crude prices.

In Europe, diesel profit margins surged to their highest level since September 2023 following recent Ukrainian attacks targeting Russian energy infrastructure. A broader boost in global refining margins has also provided support for fuel markets.

Despite stronger diesel fundamentals, Haitong Futures said the persistent crude oversupply is making investors hesitant to pursue additional gains.

Meanwhile, a senior White House official said U.S. President Donald Trump is prepared to sign legislation advancing through Congress that would impose new sanctions on Russia, provided he retains authority over how those measures are implemented.

Additional secondary sanctions on buyers of Russian crude are expected to offer continued support for global oil prices.

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