Oil notches third straight weekly loss as oversupply worries grow

Core Insights - Oil prices have experienced a decline for three consecutive weeks, primarily due to concerns over oversupply in the market [1][2][3] - West Texas Intermediate (WTI) is trading at $57.54 per barrel, while Brent futures are at $61.29 per barrel, marking their lowest levels since May [1] - The International Energy Agency has adjusted its demand forecast downward and increased surplus expectations for 2026, indicating a potential supply glut [3] Market Dynamics - The ongoing tariff disputes between the US and China, along with reduced tensions in the Middle East, have negatively impacted energy markets [1] - US crude stockpiles have risen for three consecutive weeks, further contributing to concerns about excess oil supply [2] - Goldman Sachs forecasts that Brent prices will drop to $56 per barrel and WTI to $52 per barrel, with both benchmarks down over 18% year-to-date [3] Geopolitical Factors - President Trump's discussions with Russian President Vladimir Putin may lead to increased Russian crude supply in global markets, intensifying supply concerns [2] - A potential second summit between Trump and Putin could influence oil market dynamics depending on the outcomes related to the ongoing conflict in Ukraine [2]