Released November 14, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)
"We forecast that growing global oil production and the transition to the low point of seasonal demand over the winter will accelerate the growth in global oil inventories, causing crude oil prices to continue to fall in the coming months," analysts at the Energy Information Administration (EIA), part of the U.S. Department of Energy, wrote in their monthly market report for November.
Analysts estimated that U.S. crude oil inventories increased by 5.2 million barrels during the last full week of October, though storage levels are about 4% below the five-year average for this time of year.
Looking to next year, global inventories are expected to increase by 2.2 million barrels per day (BBL/d), compared with the expected annual growth average of 1.8 million BBL/d for this year.
"Strong inventory builds could fill commercial storage options on land, which would prompt market participants to increasingly seek other, more expensive options for storing crude oil, such as floating storage," the EIA stated in a report published Wednesday.
The Paris-based International Energy Agency (IEA) joined the chorus of voices showing an increase in inventories, saying the market balance is "lopsided" as demand remains modest at best. By 2026, total global oil supplies could be 4.1 million BBL/d above expected demand levels, the agency added.
But oil prices have been under pressure amid concerns about global trade and storage levels, with West Texas Intermediate (WTI) shedding some 4.2% in Wednesday trading. The end of the U.S. government shutdown and some dip-buying put wind in the sails of WTI, though it was still struggling to break into the $60 level early in the Thursday session.
The EIA, however, heavily altered its forecast for pricing, following a string of monthly reports suggesting U.S. crude oil prices would average around $48 per barrel next year. Analysts in their report for November put WTI at $51.26 per barrel for 2026, a 5.7% upward revision from the prior month.
Explaining the revision, the EIA said China is putting more oil in its strategic reserves than expected, while sanctions on Russian oil producers could limit what's on the market. The pace at which China fills its inventories, however, could put pressure on the EIA's forecast. "If" sanctions lead to a dramatic decline in Russia production, meanwhile, it would add a premium to global crude oil prices, agency analysts reported.
By the Numbers
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Summary
A new government forecast upwardly revises the price of crude oil next year by 5.7%. Still, all indications point to an over-supplied market in 2026, though sanctions and Chinese storage levels are expected to add price tailwinds.Storage Is Bloated, but so What?
Signs point to a continued build in crude oil inventories through next year, though storage levels in China and sanctions on Russia are expected to offset any major declines in crude oil prices, the U.S. government said Wednesday."We forecast that growing global oil production and the transition to the low point of seasonal demand over the winter will accelerate the growth in global oil inventories, causing crude oil prices to continue to fall in the coming months," analysts at the Energy Information Administration (EIA), part of the U.S. Department of Energy, wrote in their monthly market report for November.
Analysts estimated that U.S. crude oil inventories increased by 5.2 million barrels during the last full week of October, though storage levels are about 4% below the five-year average for this time of year.
Looking to next year, global inventories are expected to increase by 2.2 million barrels per day (BBL/d), compared with the expected annual growth average of 1.8 million BBL/d for this year.
"Strong inventory builds could fill commercial storage options on land, which would prompt market participants to increasingly seek other, more expensive options for storing crude oil, such as floating storage," the EIA stated in a report published Wednesday.
The Paris-based International Energy Agency (IEA) joined the chorus of voices showing an increase in inventories, saying the market balance is "lopsided" as demand remains modest at best. By 2026, total global oil supplies could be 4.1 million BBL/d above expected demand levels, the agency added.
Headwinds? What Headwinds?
Growth in the U.S. economy, the world's largest, remains reasonably healthy, with an annualized 2% increase in gross domestic product (GDP) expected this year and 2.2% by 2026. The latter forecast, however, marks a 0.2% downward revision from the prior-month report from the EIA.But oil prices have been under pressure amid concerns about global trade and storage levels, with West Texas Intermediate (WTI) shedding some 4.2% in Wednesday trading. The end of the U.S. government shutdown and some dip-buying put wind in the sails of WTI, though it was still struggling to break into the $60 level early in the Thursday session.
The EIA, however, heavily altered its forecast for pricing, following a string of monthly reports suggesting U.S. crude oil prices would average around $48 per barrel next year. Analysts in their report for November put WTI at $51.26 per barrel for 2026, a 5.7% upward revision from the prior month.
Explaining the revision, the EIA said China is putting more oil in its strategic reserves than expected, while sanctions on Russian oil producers could limit what's on the market. The pace at which China fills its inventories, however, could put pressure on the EIA's forecast. "If" sanctions lead to a dramatic decline in Russia production, meanwhile, it would add a premium to global crude oil prices, agency analysts reported.
By the Numbers
- 5.7%: upward revision to WTI
- 2.2%: expansion in U.S. GDP for 2025
- 2.2: million BBL/d supply over-hang expected next year
- Global storage levels are a looming concern.
- WTI still expected to linger below $60 per barrel next year.
- China adding to SPR and sanctions on Russian oil producers could limit what's on the market.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
