Oil prices declined for a second consecutive session on Tuesday as fears of oversupply and weakening demand tied to growing tensions between the United States and China, the world’s two largest oil consumers, weighed on markets.
By 4:15 pm AEDT (5:15 am GMT), Brent crude futures were down 12 cents, or 0.2%, at US$60.89 per barrel, while U.S. West Texas Intermediate (WTI) crude for December delivery slipped 12 cents, or 0.2%, to US$56.90.
The losses followed Monday’s sharp selloff, which dragged prices to their lowest levels since early May amid concerns that the renewed U.S.-China trade dispute could slow global economic growth.
The slide in prices comes as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia - collectively known as OPEC+ - continue to push ahead with plans to add more crude to global markets.
Analysts now expect a supply glut to persist through this year and next, with the International Energy Agency last week forecasting a surplus of nearly 4 million barrels per day in 2026.
ANZ analysts noted: "Crude oil edged lower amid mounting evidence that the long-awaited surplus is finally starting to emerge. Crude oil held in tankers traversing the world’s oceans expanded to a fresh high, hitting 1.24mbbl in the week to 17 October, according to data from analytics firm Vortexa."
“Trump urged Ukraine’s President Zelenskyy to accept President Putin’s terms for a peace deal or be destroyed by Russia. This was amid a tense meeting in the White House, which appears to reflect the U.S. president’s shifting position on the war.”
