Oil seeks balance with 'oversupply problem'

Oil steadied after losing nearly 4 percent on signs of oversupply. Oil prices were flat in Asia after losing nearly 4 percent on Tuesday as rising flows from Russia and higher U.S. production raised concerns about oversupply. The global benchmark Brent traded around $73 a barrel, while U.S. crude traded around $68. Russia’s weekly average of seaborne crude exports rose to its highest level since early July, while the U.S. raised its domestic crude production forecast for this year. Crude has fallen by nearly a quarter since late September; OPEC+’s recent plan to deepen production cuts has failed to stem the decline amid doubts that the group’s members will fully commit to voluntary cuts. Adding to the bearish outlook is China’s crude consumption growth, which is forecast to slow next year, and there is also the possibility that the U.S. could slip into recession. “Oil is facing a U.S.-led surge in non-OPEC supply, and doubts about OPEC compliance are clashing with some expectations of softening demand,” said Vishnu Varathan, head of Asia economics and strategy at Mizuho Bank in Singapore. The Energy Information Administration said in its monthly outlook that U.S. crude production is projected at 12.93 million bpd in 2023, up 300,000 bpd from a previous estimate. Separately, the American Petroleum Institute reported that oil inventories at its hub in Cushing, Oklahoma, rose by 1.4 million bpd, according to sources.