Oil at five-month low

Oil held on to the bulk of a five-day losing streak that has dragged prices to their lowest level since June, driven by signs that global supply is outpacing demand despite OPEC+ plans to rein in output until 2024. Global benchmark Brent rose to $75 a barrel after falling 11% in its longest losing streak since February. U.S. crude was below $70. Official U.S. data showed a new build in crude inventories at the Cushing’s hub, with oil production hovering near a record, while gasoline demand softened. Widely watched market timeframes suggest there is ample supply in the near term. The decline in crude helped pull the broader commodity gauge to its lowest level since 2021, despite agreement last week by the Commonwealth of Petroleum Exporting Countries and its allies to deepen output cuts. Futures have fallen by about a quarter from their September peak on concerns that rising production from outside the group will outstrip demand, while there is speculation that OPEC+ members may not fully comply with the restrictions. One group of producers in the alliance suggested their latest deal would stand and could be extended. Saudi Arabia said earlier this week that the cuts would “definitely” remain in place until March, while Russia made similar statements. Algeria and Kuwait also joined in, but crude remained under pressure. “Markets seem to be completely ignoring the OPEC+ measures,” said Priyanka Sachdeva, senior market analyst at Phillip Nova Pte in Singapore. In addition, she said a downgrade of China’s rating by Moody’s Investors Service had contributed to the weakening outlook for the largest crude importer.