On Tuesday, oil prices remained stable following a decline in the previous session, amidst rising concerns about oversupply and weakening demand, exacerbated by the ongoing trade tensions between the U.S. and China. Brent crude futures were steady at $61.01 per barrel, while the November contract for U.S. West Texas Intermediate (WTI) dropped 15 cents to $57.37, with the more actively traded December contract holding at $57.02.
Prices had recently fallen to their lowest levels since early May due to fears of oversupply and slowing economic growth linked to the escalating U.S.-China trade dispute. According to Ole Hansen, head of commodity strategy at Saxo Bank, speculative bets on falling prices are likely to continue as long as Brent remains below $65.
Both Brent and WTI are now in a contango market structure, indicating that immediate supply is abundant and demand is dwindling. The Organization of the Petroleum Exporting Countries (OPEC+) has been increasing oil supply, leading to predictions of a crude surplus. The International Energy Agency (IEA) anticipates a global surplus nearing 4 million barrels per day in 2026, while Goldman Sachs forecasts Brent prices may drop to $52 per barrel in Q4 2026.
A preliminary Reuters poll indicated that U.S. crude stockpiles likely increased last week, ahead of reports from the American Petroleum Institute and the EIA. Although there are signs of rising distillate draws, analysts believe the prevailing market bias leans towards a downward trend unless OPEC+ adjusts its production strategies or macroeconomic conditions improve unexpectedly.