Oil prices give up their profits in light of the rising tension between China and America

Oil prices have yielded early profits, as rising tensions between China and the United States have injured appetite for high-risk assets, while traders have been waiting for a report on the market prospects of the international energy agency that can strengthen the expectation of a record surplus in supplies. Brent roughly settled near $ 63 a barrel after rising 0.5%, while the intermediate crude of West Texas closer $ 59 a barrel. In the latest suspension of mutual tensions between Beijing and Washington, China imposed restrictions on five US entities belonging to one of the largest shipbuilding companies in South Korea, and threatened to take additional retaliation measures, while equity indexes decreased. Later Tuesday, the International Energy Agency in Paris is scheduled to release its monthly report from the Mark Outlook. The agency already expected a record surplus in the offer during 2026, with the OPEC+ Alliance alleviating supply restrictions in an effort to regain its market share, while competitive producers increase their production, especially in the Americas. The renewal of the trade war deepens in the market. The resumption of the trade conflict between the world’s largest oil consumers has restored a state of uncertainty to future expectations. The prices have fallen over the past two weeks after the OPEC+ Alliance increased the supplies, at a time when the fear increases the expected surplus in the offer later in the year. In his monthly report released on Monday, OPEC expected the global oil question to grow by 1.3 million barrels per day this year, and 1.4 million barrels per day in 2026. This is an optimistic view, with other bodies, such as the International Energy Agency, expecting a record lead in the offer next year. Also read: Putin facilitates the rules of fuel subsidy for refineries after Ukrainian attacks. Vandana Hari, founder of the market analysis firm Vanda Insights in Singapore, said: “While the expectation of a surplus continues, oil remains vulnerable to waves of panic sales and cautious purchases that recover only a small part of the losses,” added that the expectation of additional US rates on China is after Trump’s resort. About his eschalatory tone this weekend. Signs of weakness appear in the curve of Brent-Ru futures, as the time spreads for contracts, from March 2026 and for a few subsequent months, turned into a situation, which is a structure in which contracts in the short term at a discount on a discount compared to long-term contracts. (Prices have been updated to reflect reality reality)