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Oil falls on oversupply concerns but tighter fuel markets limit drop
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Oil falls on oversupply concerns but tighter fuel markets limit drop
Nov 19, 2025 3:37 AM

LONDON, Nov 19 (Reuters) - Oil prices fell on Wednesday

due to higher crude inventories in the U.S., reinforcing

oversupply concerns, but falls were limited by a tighter fuel

market as a result of attacks against Russia's oil

infrastructure.

Brent crude futures fell 71 cents, or 1%, to $64.18

a barrel by 1111 GMT, after gaining 1.1% the previous session.

U.S. West Texas Intermediate crude futures fell 63

cents, or 1%, to $60.11 a barrel, after rising 1.4% on Tuesday.

U.S. crude stocks rose by 4.45 million barrels in the week

ended November 14, while gasoline inventories climbed by 1.55

million barrels and distillate inventories increased by 577,000

barrels, market sources said late on Tuesday, citing American

Petroleum Institute figures.

"Overall, the report was relatively bearish," said ING

commodities strategists, though they cautioned: "Market

participants appear more concerned about supply risks than the

odds of a surplus going forward."

Prices rose on Tuesday because of a tighter diesel market on

the back of lower Russian exports, PVM analyst John Evans said.

U.S. sanctions on Rosneft and Lukoil

set a November 21 deadline for companies to unwind their

dealings with the major Russian producers.

On Monday, the U.S. Treasury said the sanctions, already

squeezing Russia's oil revenue, are expected to curb its export

volumes. Crude buyers in China and India have already started

switching to alternative suppliers.

Concerns about Russian supply are being weighed against

analysts' forecasts that oil output is in excess of current

demand, which has put pressure on prices.

After Ukrainian attacks on Russian energy and port

infrastructure, profit margins on diesel fuel surged in Europe,

reaching their highest on Tuesday since September 2023, amid an

increase in refinery margins globally.

Official U.S. government inventory data will be released

later on Wednesday. Eight analysts polled by Reuters estimated

that crude inventories were likely to have fallen by an average

of about 600,000 barrels in the week to November 14.

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