Oil prices dip amid supply concerns
Oil prices fell for a second consecutive day on Tuesday as concerns over excess supply and potential demand risks from ongoing U.S.-China tensions weighed on the market.
Brent crude futures declined 17 cents, or 0.28%, to $60.84 per barrel at 0343 GMT, News.Az reports, citing Reuters.
U.S. West Texas Intermediate (WTI) crude for November delivery, set to expire on Tuesday, fell 0.52% to $57.22, while the more active December contract dropped 19 cents, or 0.33%, to $56.83.
Prices hit their lowest levels since early May in Monday’s session amid fears of slowing economic growth due to escalating trade disputes between the world’s two largest oil consumers.
Both Brent and WTI have moved into contango structures, where near-term prices are lower than later contracts, typically signaling abundant supply and weakening demand.
Prices have also been pressured by OPEC and its allies, including Russia, collectively known as OPEC+, who are moving forward with plans to increase oil output. Analysts predict a global crude surplus this year and next, with the International Energy Agency projecting nearly 4 million barrels per day of surplus in 2026.
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