Oil News: Crude Oil Futures Steady After Inventory Drop Softens Oil Demand Fears

Oil Prices Find Support as Traders Assess Supply Risks

Light crude oil futures traded slightly higher on Thursday after Wednesday’s sharp decline drove buyers back into the short-term retracement zone at $59.23 to $58.44. The November 13 main bottom at $58.07 also provided support, giving traders a clear reference point after the prior session’s sell-off. The rebound came as broader crude markets attempted to stabilize following a 2.1% drop driven by renewed geopolitical speculation.

At 12:40 GMT, Light Crude Oil Futures are trading $59.86, up $0.61 or +1.03%.

Oversupply Concerns Temper Oil Prices Forecast

Prices recovered modestly in early trade, but the upside remained restrained as headlines suggested the U.S. had pushed Ukraine to consider a Washington-drafted framework that would end the war with Russia in exchange for concessions.

Traders interpreted the report as a potential path toward reduced sanctions on Russian crude, which could release additional supply into an already well-stocked market. That prospect weighed on sentiment given simultaneous increases in tanker-held crude and higher output from major producers.

ING analysts noted that Ukraine was unlikely to accept the framework as presented, but they acknowledged that U.S. involvement eased concerns about tighter sanctions or stricter enforcement. For crude markets today, the issue was less about an imminent agreement and more about the possibility of incremental barrels returning to global trade flows if diplomatic pressure continues.

Inventory Draw Supports Prices, but Fuel Builds Raise Caution

A larger-than-expected draw in U.S. crude inventories offered some relief. The Energy Information Administration reported a 3.4-million-barrel decline in the week ending November 14, far exceeding expectations for a 603,000-barrel draw. Higher refining runs—supported by favorable margins—and strong export demand contributed to the reduction in crude stocks.

However, gasoline and distillate inventories rose for the first time in more than a month, signaling that U.S. consumption may be slowing. That data point reintroduced concerns about softer demand heading into late November, particularly as refiners maintain elevated runs.

Geopolitical Deadlines Keep Crude Oil News Today in Focus

Traders are also watching the November 21 deadline for companies to wind down dealings with Rosneft and Lukoil, Russia’s largest crude exporters. The restrictions, tied to U.S. efforts to pressure Moscow, introduce another element of uncertainty for supply expectations. Any adjustment in compliance or enforcement could influence near-term flows and sentiment.

Short-Term Oil Prices Projections Tilt Neutral

From a technical perspective, gains continue to be capped by the 50-day moving average at $60.61, with additional resistance at the recent minor tops at $60.85 and $61.23, as well as the 200-day moving average at $61.33.

Support remains defined by the retracement zone and the November 13 main bottom. With fundamental signals mixed and resistance levels firm, the short-term outlook leans neutral, favoring rangebound trade until a clearer catalyst emerges.

More Information in our Economic Calendar.