Crude oil prices under pressure, trade tensions, and oversupply raise concerns

Brent crude futures fell 12 cents, or 0.19%, to $62.27 per barrel, while US West Texas Intermediate futures fell 10 cents, or 0.17%, to $58.60 per barrel.

New Delhi: Crude oil prices, which began falling on Tuesday, appeared to extend further today. Following the IEA's forecast, crude oil reached a four-month low. Brent prices slipped below $63. Investors are now concerned about the impact of rising supply and escalating tensions between the US and China (US-China trade war fears). On Tuesday, West Texas Intermediate was trading near $59 per barrel after hitting its lowest level since May, while Brent crude futures hovered around $62.

Brent crude futures fell 12 cents, or 0.19%, to $62.27 per barrel, while US West Texas Intermediate futures fell 10 cents, or 0.17%, to $58.60 per barrel.

Meanwhile, the International Energy Agency (IEA) has projected in its latest forecast that a historic oversupply of oil will occur by 2026. According to the agency, next year, i.e., in 2026, global crude supply will exceed demand by about 4 million barrels per day, the largest increase ever on an annual basis.

Meanwhile, investors are bracing for recent retaliation between the world's two largest economies, as Beijing has imposed sanctions on the US units of a South Korean shipping giant. US Trade Representative Jamieson Greer predicts that tensions with China over export controls will ease following recent talks between representatives of the two countries.

Oil prices plummeted in August and September, and WTI has fallen by about 18% so far this year. This decline is due to growing concerns that global supply will outstrip demand, and many Wall Street banks predict that futures prices will reach $50 per barrel again.