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West Texas Intermediate (WTI) Crude Oil extends its decline for the third consecutive day on Wednesday, slipping below the key $60.00 per barrel mark to hit a one-week low after the latest US Energy Information Administration (EIA) report showed a larger-than-expected inventory build. At the time of writing, WTI trades around $59.60, down nearly 1% on the day.

According to the EIA, Crude Oil Stocks Change rose by 5.202 million barrels in the week ending October 31, far exceeding market expectations for a 1.8 million-barrel increase and following the previous week’s draw of 6.858 million barrels.

The data reinforced concerns that US supply remains ample even as global demand shows signs of fatigue. Domestic crude production held near record levels at 13.65 million barrels per day, while net crude imports jumped to 1.56 million bpd, adding to the overall build in inventories.

The report coincides with OPEC+ recently agreeing to a modest output increase of 137,000 barrels per day for December, while signaling plans to pause further production hikes during the first quarter of 2026 to avoid a potential glut amid subdued demand.

On the demand side, global manufacturing activity remains sluggish, adding to the bearish tone. The Eurozone’s HCOB Manufacturing Purchasing Managers Index (PMI) for October rose to 50, a slight improvement from 49.8 in September, signaling stabilization in the region’s factory sector after more than a year of contraction. However, underlying demand remains weak.

In the United States, the ISM Manufacturing PMI stayed in contraction at 48.7. Meanwhile, in China, the official NBS Manufacturing PMI fell to 49, indicating continued weakness among large state-owned enterprises, while the RatingDog (Caixin) Manufacturing PMI eased to 50.6 from 50.9, reflecting softer expansion in smaller private firms.

The combination of a firmer US Dollar (USD), uneven global factory data, and rising Oil inventories is weighing heavily on sentiment, keeping WTI under pressure.

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