DBT Bureau
Pune, 6 Nov 2025
Crude oil prices fell by 1.78% to 5,305 as traders weighed a sharp rise in U.S. inventories against growing signs that sanctions on Russian oil exports are beginning to bite. The American Petroleum Institute (API) reported a significant inventory build of 6.5 million barrels for the week ended October 31, the largest increase in over three months, reversing the previous week’s 4 million-barrel decline. This pushed total U.S. crude inventories to a year-to-date gain of 3.6 million barrels, prompting a reassessment of global supply dynamics. Official EIA data also confirmed a 5.2 million-barrel increase, exceeding expectations, while gasoline and distillate stocks dropped by 4.73 million and 0.64 million barrels respectively, indicating continued strength in refined fuel demand. Adding to pressure, Libya announced plans to ramp up production to 1.6 million barrels per day (bpd) next year and 2 million bpd within five years, contributing to broader supply concerns. Meanwhile, OPEC+ maintained its demand outlook but signaled higher supply through 2026 as the group accelerates output quota increases. The organization reported a September production rise of 630,000 bpd to 43.05 million bpd, reducing the expected 2026 supply deficit to just 50,000 bpd. The market witnessed fresh selling with open interest rising by 0.68% to 13,512 while prices declined by 96. Crude oil finds support at 5,267 and 5,230, while resistance is placed at 5,372 and 5,440.
Market Analysis:
- Crudeoil trading range for the day is 5230-5440.
- Crude oil dropped as traders weighed a sharp rise in inventories against signs that US sanctions on Russia are starting to take effect.
- API report indicated the biggest increase in U.S. inventories in more than three months for the week ended October 31
- Libya considers raising oil output to 1.6 million bpd next year
Source:Kedia Stocks & Commodities Research Pvt. Ltd.,Mumbai
