Oil prices edged higher, driven by Washington's plan to purchase 1 million barrels of crude to replenish the US strategic petroleum reserve. However, prices remain near five-month lows amid market expectations of an imminent global oversupply.

WTI prices fluctuated over $1, settling around $58 per barrel. While the US plan to boost its strategic petroleum reserves supported oil prices, it was insufficient to shift market sentiment. The crude market has declined over 10% since late September, with WTI futures heading for their third consecutive monthly drop.

The November WTI crude futures, set to expire on Tuesday, increased by 0.5% to close at $57.82 per barrel. The more actively traded December contract settled at $57.24 per barrel. Meanwhile, December Brent crude futures rose by 0.5%, finishing at $61.32 per barrel.

The amount of crude oil carried by offshore tankers has surged to record highs, indicating that the long-anticipated oversupply may be beginning to materialize. The International Energy Agency anticipates that global oil supply will exceed demand by nearly 4 million barrels per day in 2026, as OPEC+ continues to restore production and its competitors are also bolstering their supply outlooks.

“Our supply growth is three times that of demand growth,” said Bob McNally, founder and president of Rapidan Energy Group, in an interview. “We will experience a supply surplus in the short term.”

Simultaneously, according to data from Bridgeton Research Group, commodity trading advisers' short positions may reach record levels in the coming trading days, pushing prices lower.