Brent Softens as Oil Prices Head for Fourth Monthly Drop


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- Brent futures were mixed Friday (11/28) morning as the oil 
complex was heading for the fourth consecutive monthly decline. Due to a 
technical issue at CME, trading of WTI, RBOB and ULSD futures was halted early 
in the morning but was subsequently restored.

   The front-month WTI futures contract edged up 0.29 to $58.94 bbl, while the 
ICE Brent futures contract for January delivery dropped 0.025 to $63.09 bbl. 
Downstream, the ULSD futures contract for December delivery was up $0.374 to 
$2.3629 gallon. Meanwhile, the December RBOB futures contract increased $0.0398 
to $1.9288 gallon.

   The U.S. Dollar Index also strengthened by 0.088 points to 99.78 against a 
basket of foreign currencies.

   Front-month crude futures softened by around 3% in November. Over the past 
four months, they slipped by close to 15% as it became evident the market was 
heading into oversupply. Global supply additions rapidly outpaced demand growth 
this year, and while a lower oil price will take some wind out of the sails of 
production growth, this trend is likely to continue in 2026.

   The Organization of Petroleum Exporting Countries has been ramping up output 
since April and is planning a modest increase in December. This is expected to 
be the last quota hike. Members are meeting this Sunday to set production 
policy for next year and will likely stick to their plan to pause output 
increases in the first quarter of 2026.

   In the U.S., oil inventories continued to expand. The Energy Information 
Administration on Wednesday (11/26) reported builds to crude oil, gasoline, 
distillate fuel oil and jet fuel stocks in the week ended November 21. While 
ULSD inventories remain limited, the tightness has eased over the last few 
weeks, with stocks now trailing year-ago levels by 4.3%.

   The EIA is set to release monthly oil statistics for September today. 
Monthly data provide a better view of market balances than weekly estimates, 
particularly when it comes to oil products supplied to the domestic market, a 
proxy figure for fuels demand.




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