08:40 AM EST, 11/21/2025 (MT Newswires) -- Oil prices fell early on Friday, falling for a third day to a month low on abundant supply even as gasoline and diesel demand remains solid amid declining availability.

West Texas Intermediate crude oil for January delivery was last seen down US$0.55 to US$58.45 per barrel, the lowest since Oct.21, while January Brent crude was down US$0.42 to US$62.96.

The drop comes as crude oil supply rises above demand following production hikes from the OPEC+ cartel and producers in North and South America. Major forecasting agencies are expecting global inventories to continue to rise into next year, pressuring prices, though U.S. sanctions on Russia's two largest exporters, Rosneft and Lukoil, set to take effect today, may offer some relief to the over supply as their customers look to alternative sources.

"Recent sanctions have forced Russian oil buyers to put their purchases on hold," PVM Oil Associates noted.

However the abundant supply comes on strong demand for gasoline and diesel while weak refining capacity as Ukrainian attacks on Russia's refineries limit that country's product exports while lower refining capacity globally also cuts into supply.

"While oil has continued to struggle, refined products have continued to outperform. While last year the market was looking to close refinery capacity, new additions that were supposed to offset closures have continued to underperform. In fact, refinery capacity for gasoline and diesel has actually decreased during the year so far (~350 kb/d YTD), adding incremental tightness to healthy product balances," Brian Leisen, global oil strategist at RBC Capital Markets, wrote.