The Organization of Arab Petroleum Exporting Countries (OAPEC) published its weekly update on global oil markets, reporting that crude oil prices suffered weekly losses in futures markets of about 2.8% for Brent crude and about 3.3% for West Texas Intermediate (WTI), declining to their lowest levels since last May.

The report highlighted the main factors behind the decline in crude oil prices as follows:

• US President’s threat to impose increasing tariffs on China, following China’s expansion of controls on its rare metals exports, which could negatively impact the global economy and weaken oil demand.
• The fading of the geopolitical risk premium related to potential supply disruptions after a peace agreement was reached in the Middle East, the world’s largest oil-producing region.
• An increase in US commercial crude oil inventories by about 3.7 million barrels, reaching approximately 420.3 million barrels, alongside a rise in net imports.
• Growing concerns that a prolonged US government shutdown could significantly slow the performance of the world’s largest oil-consuming economy.

The main factors contributing to the decline in crude oil prices also included:

• Reduced fears of an oil supply surplus following the decision by OPEC+ countries (Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, Oman) to increase production by less than expected, by 137,000 barrels per day in November 2025.
• No progress in peace talks in Eastern Europe, meaning continued sanctions on Russia and targeting of energy infrastructure, especially Russian oil refineries.
• An increase in total US supplies of petroleum products, indicating strong demand, reaching about 22 million barrels per day, the highest level since December 2022.
• A decline in the number of active oil rigs in the US for the second consecutive week, down to 418 rigs, an early indicator of potential future production decline.