Oil prices fell during Tuesday’s trading session, settling near their lowest levels in weeks, pressured by a combination of oversupply and weakening global demand particularly amid ongoing trade tensions between the United States and China, despite comments from U.S. President Donald Trump that briefly revived optimism about reaching a potential deal soon.
Brent crude declined to around $60.8 per barrel, while West Texas Intermediate (WTI) dropped to $57.4 per barrel, with the short-term market trend remaining in negative territory, according to consultancy estimates. Preliminary data indicated a rise in U.S. inventories last week, confirming the abundance of supply in the market and limiting any temporary recovery attempts in prices.
Markets are closely monitoring developments in Russia after a drone attack targeted oil facilities belonging to Rosneft, alongside Kazakhstan’s decision to cut production at the Karachaganak field by up to 30%. Despite these events, their impact on prices has remained limited due to ample global supplies and easing concerns about potential Russian supply disruptions.
Downward pressure on prices was further reinforced by a report from the International Energy Agency (IEA), which projected a potential global surplus of up to 4 million barrels per day by 2026, driven by expanding output from OPEC+ and rival producers, coupled with weaker demand growth. These projections alongside geopolitical uncertainty and a slowing global economy paint a cautious and generally bearish outlook for oil markets in the medium term.
Brent crude slipped to around $60.8 per barrel, while WTI fell to $57.4 per barrel. Early data showed an increase in U.S. inventories, reinforcing the short term bearish sentiment and confirming the persistence of market oversupply. Although Russian oil facilities came under drone attack and Kazakhstan reduced production from the Karachaganak field by 25–30%, the overall market impact remained muted amid plentiful global supply and reduced geopolitical risk premiums.
The IEA’s report highlighted the likelihood of a surplus reaching 4 million barrels per day by 2026 due to rising production from OPEC+ and competing producers, strengthening expectations that oil prices will remain under pressure in the medium term unless global demand improves.
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