Oil prices dip amid oversupply concerns and renewed US-China trade tensions
Oil prices fell on Wednesday, extending recent losses, as investors weighed warnings of a global supply glut in 2026 alongside escalating U.S.-China trade tensions.
By 0640 GMT, Brent crude futures slipped 9 cents (0.14%) to $62.30 per barrel, while U.S. West Texas Intermediate eased 3 cents (0.05%) to $58.67 per barrel. Both benchmarks had closed at five-month lows in the previous session, News.Az reports, citing Reuters.
The International Energy Agency (IEA) warned that the global oil market could face a surplus of up to 4 million barrels per day next year, driven by rising output from OPEC+ and other producers while demand remains sluggish. Analysts said the combination of oversupply and mixed demand signals is pressuring prices.
Adding to market concerns, trade tensions between the United States and China have reignited. China expanded rare earth export controls last week, while U.S. President Donald Trump threatened to raise tariffs on Chinese goods to 100% and tighten software export restrictions from November 1. Analysts said these developments could disrupt shipping, raise trading costs, and weigh on economic growth, further impacting oil demand.
Investors are also closely watching U.S. inventory data. Preliminary estimates suggest crude stockpiles may have risen slightly last week, while gasoline and distillate inventories likely fell. The American Petroleum Institute will release its weekly report on Wednesday afternoon, with official Energy Information Administration data due Thursday.
Market watchers say oil price movements will depend on both oversupply trends and developments in the U.S.-China trade dispute.
Similar news
