Core Insights - Oil prices are declining due to supply concerns and escalating U.S.–China trade tensions [1][4] - Brent crude futures fell by 0.29% to $61.11, while WTI dropped 0.35% to $57.34, marking a third consecutive weekly decline for both benchmarks [2] - The International Energy Agency has raised its forecast for global oil supply growth, warning of a potential supply surplus by 2026 [3] Supply and Demand Dynamics - Concerns about oversupply are driven by increased production from oil-producing nations and fears of an economic slowdown due to U.S.–China trade tensions [4] - U.S. oil output reached a record high last week, contributing to the supply increase [5] - The easing of geopolitical risks, such as the Gaza ceasefire, has further reduced concerns about major supply disruptions in the Middle East [3] Geopolitical Factors - Recent U.S.–China tensions, including extra port fees on cargo shipments, could slow freight flows and undermine global economic growth [5] - A prolonged decoupling between the U.S. and China, the two largest energy consumers, may significantly reduce oil demand [5]