Oil Suffers Worst Monthly Slide Since 2023 as US Futures Glitch Halts Trading
Oil markets have taken a heavy hit this month. We are seeing the worst monthly drop for crude since 2023. At the same time, trading on U.S. oil futures was frozen when a technical glitch hit one of the world’s largest exchanges. That stopgap sparked chaos. We will explore what happened, how we got here, why oil prices crashed, and what it means for markets, economies, and everyday people.
Oil Market: A Rough Ride in November
Global oil benchmarks fell sharply during November. According to a recent report, crude is on track for its fourth straight monthly drop, the steepest slump since mid‑2023. For the global benchmark Brent crude oil, prices slipped, while West Texas Intermediate (WTI) dropped to near $59 per barrel before trading halted. That slide reflects fears that the world may be heading into a supply glut, even as demand remains uncertain or weak.
What Triggered the Futures Glitch
On November 28, 2025, trading on the CME Group, the biggest derivatives exchange globally, was halted because of a malfunction at one of its data centers. A “cooling issue” at the data center operator caused the technical failure. The outage affected many markets at once: commodities, currencies, bonds, equities, including U.S. crude‑oil futures and gasoline contracts. The disruption was especially risky because it came just after the U.S. Thanksgiving holiday, a period when market liquidity is already thin. In such conditions, even a short halt can cause exaggerated swings in price.
Some traders had trouble hedging, while others struggled with wider bid-offer spreads and limited ability to transact.
Why Oil Is Sliding: The Bigger Picture
Several deeper forces are combining to push oil lower:
- Global supply surge: According to recent projections, oil production, both from the group of producing nations known as OPEC+ and from non‑OPEC regions, is rising. Some analysts now expect a supply surplus in 2026.
- Inventory build in the U.S.: Latest data show a sharp build‑up in U.S. crude stocks, far above what markets expected. That adds to fears of oversupply and weak near‑term demand.
- Weak demand outlook: Demand concerns are rising amid global economic uncertainty. Some big buyers are cutting purchases.
- Changing market expectations: What once looked like tight supply and rising demand has flipped. More investors now expect a sluggish 2026 for oil demand, enough to keep prices under pressure.
Put together, these factors created a bearish backdrop long before the futures‑trading glitch, but the glitch made things noisier, faster, and more chaotic.
What This Means for Energy Markets and Economies
The slump and trading disruption carry real consequences:
- For oil companies, lower oil prices squeeze profit margins. Firms with high production costs may struggle.
- For oil‑producing economies: Countries that depend heavily on oil revenues could face fiscal stress if low prices persist.
- For downstream consumers: Lower crude costs might help ease fuel prices, offering a potential benefit to consumers if savings are passed on.
- For investors and traders: The futures glitch exposed vulnerabilities. Market participants may demand better safeguards, or price in extra risk, meaning higher volatility ahead.
What Happens Next, What to Watch
We see a few key things to monitor soon:
- The upcoming meeting of OPEC+, if the group signals further output increases, prices may fall further.
- Official inventory data in the U.S. showed continued stock builds, which could deepen bearish sentiment.
- Geopolitical developments, especially in major oil‑producing regions. Any disruption could offer short‑term spikes.
- Market reaction to broader economic signals. A weak global economy would likely keep oil demand soft, further pressuring prices.
Conclusion
We are witnessing a tough moment for oil. A mix of oversupply, weak demand, and a technical glitch at a major exchange has pushed prices into the worst monthly slide in over two years. That slump matters, not just for traders and oil firms, but for economies and everyday people. As we move into 2026, volatility is likely to stay high. For now, staying alert to global supply trends, production decisions, and market signals remains crucial.
FAQS
Crude oil futures are dropping because there is too much oil supply and not enough demand.
Oil stocks fall when companies expect lower profits. Falling oil prices cut income and torment worry.
Most oil, about 80% of proven oil reserves, is held by members of the OPEC cartel.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
