Oil prices were headed for a weekly loss of more than 2% as concerns about a looming supply surplus outweigh geopolitical risks.In early trading, Brent crude and WTI both fell 0.2% to $59.69 a barrel and $55.90 a barrel, respectively. Crude has fallen 20% this year on prospects of an impending global supply glut and subdued demand.The benchmarks rose in the previous session on growing tensions between the U.S. and Venezuela after the Trump administration announced a blockade of all sanctioned tankers in or ...

Oil traders are not counting on OPEC+ to cut production next year, despite forecasts that a global supply surplus could send prices even lower https://t.co/fFzdtAlYLU ...

Group 1: Oil Prices and Market Trends - Oil prices have reached a five-month low due to escalating U.S.-China trade tensions and predictions of a supply surplus in 2026, with Brent crude futures settling at $61.91 per barrel and WTI at $58.27 [1] - Bank of America forecasts that Brent prices could drop below $50 per barrel if trade tensions escalate and OPEC+ production increases [2] - The International Energy Agency (IEA) predicts a potential surplus in the global oil market of up to 4 million barrels per day next year, driven by increased output from OPEC+ and sluggish demand [5] Group 2: U.S.-China Trade Relations - The U.S. and China have renewed trade tensions, imposing additional port fees on ships, which could disrupt global freight flows [2] - Recent actions include China increasing rare earth export controls and the U.S. threatening to raise tariffs on Chinese goods to 100% [3] - U.S. Treasury Secretary indicated that the U.S. does not wish to escalate the trade conflict, with a potential meeting between President Trump and President Xi Jinping planned [3] Group 3: Economic Implications - Deflationary pressures in China are evident, with both consumer and producer prices falling, influenced by a prolonged property market slump and trade tensions [4] - The U.S. Federal Reserve is urged to cut its benchmark interest rate to support economic growth and oil demand amid these trade tensions [4] - U.S. retail sales, excluding motor vehicles and parts, are expected to show gains, although partly due to higher prices [5] Group 4: Sanctions and Global Oil Supply - Britain has targeted Russia's largest oil companies and shadow fleet tankers to tighten energy sanctions and limit Kremlin revenues [6] - Russia is the second-largest crude oil producer globally, and increased sanctions due to the Ukraine conflict are expected to restrict oil availability in global markets [6]

Core Viewpoint - Oil prices are experiencing a decline due to concerns over a potential supply surplus in 2026 as indicated by the International Energy Agency, alongside ongoing U.S.-China trade tensions [1] Group 1: Oil Prices - Oil prices fell in early trade on Wednesday, continuing losses from the previous session [1] - Investors are reacting to the International Energy Agency's warning about a supply surplus expected in 2026 [1] - The decline in oil prices is also influenced by the current state of U.S.-China trade relations [1]

Core Viewpoint - Oil prices declined due to anticipated production increases by OPEC+ and the resumption of oil exports from Iraq's Kurdistan region via Turkey, indicating a potential supply surplus in the market [1] Group 1: OPEC+ Production Increase - OPEC+ is expected to increase production, contributing to the downward pressure on oil prices [1] Group 2: Iraq's Oil Exports - The resumption of oil exports from Iraq's Kurdistan region through Turkey is reinforcing the outlook for a supply surplus [1]

Group 1 - Oil futures have risen for three consecutive sessions, driven by a weaker U.S. dollar and concerns over potential supply disruptions from Russia [1] - Market participants are closely monitoring geopolitical tensions and the possibility of further Western sanctions on Russian supplies, which could impact supply surplus expectations [2] - Tomorrow's EIA inventory data is anticipated to show crude and gasoline stocks remaining unchanged, while a build in diesel stocks is expected according to analysts' estimates [2]