Oil Prices Stabilize Amid Signs of Global Supply Shift

Oil prices steadied on November 10, 2025, as traders cautiously monitored market metrics and awaited crucial reports that may signal an impending global surplus. Brent crude hovered below $64 a barrel after a modest gain on Monday, while West Texas Intermediate (WTI) held steady near $60. The WTI prompt spread, a key indicator of market conditions, narrowed to 9 cents a barrel in backwardation, its lowest level since February, suggesting less-tight market conditions. Traders closely watched the developments as the narrowing spread indicated a shift in market dynamics. The WTI prompt spread had been in contango, a condition where near-term contracts are more expensive than longer-term ones, but it has now flipped into backwardation, where near-term contracts are cheaper. This change is a significant development, as it suggests that traders are no longer anticipating a shortage of oil, but rather a potential surplus. The immediate impact of the market shift was evident in the price movements. Brent crude, which had been trading above $65 a barrel earlier in the week, retreated to below $64, while WTI held steady near $60. The price movements reflected the cautious optimism among traders, who are waiting for further clarity on the market conditions. In the background, the global oil market has been grappling with the aftermath of the COVID-19 pandemic, which led to a significant decline in demand. However, with the global economy slowly recovering, oil demand has begun to pick up, putting pressure on supply. The Organization of the Petroleum Exporting Countries (OPEC) and its allies have been working to manage the market, but the recent developments suggest that the market may be shifting towards a surplus. As the market continues to unfold, traders will be closely watching the upcoming reports from the International Energy Agency (IEA) and the OPEC, which are expected to provide further insights into the global oil market. The reports will likely influence market sentiment and price movements, and traders will be closely monitoring the developments to make informed decisions.