Oil Prices Decline Amid Concerns of Oversupply and Slowing Global Demand
Global oil prices witnessed a slight decline today, Tuesday, affected by concerns of oversupply and a drop in demand due to ongoing trade tensions between the United States and China, the two largest consumers of crude oil in the world. Despite this atmosphere, U.S. President Donald Trump expressed optimism about the possibility of reaching a trade agreement between the two countries.
Brent crude futures recorded a decline of 0.3% to reach $60.83 per barrel, while U.S. West Texas Intermediate crude for November delivery fell by 0.2% to $57.38. The more active December contract dropped by 13 cents, or 0.2%, to $56.89.
In statements made on Monday, Trump said: "I believe we will ultimately reach a very strong trade agreement. We will be happy with that," referring to his expectations of reaching a fair deal with Chinese President Xi Jinping, despite ongoing disagreements over tariffs, technology, and market access. The two leaders are scheduled to meet in South Korea next week.
Separately, the Novokuibyshevsk refinery owned by Russian company Rosneft halted crude processing operations on Sunday following a drone attack that targeted the facility located in the Volga region, increasing uncertainty regarding Russian supplies.
Regarding India, Trump renewed his warning of the potential for "massive" tariffs if it does not stop purchasing Russian oil, noting that India has become the main buyer of low-priced Russian crude following Western sanctions imposed on Moscow.
This price decline also comes against the backdrop of a report released by the International Energy Agency last week, which predicted that the global oil market could face a surplus of up to four million barrels per day by 2026, due to increased production by OPEC+ countries and competitors, while global demand remains weak.
