Oil prices fall, stay close to 5 months low on the trade in the US China, threatening supply surplus

Through Scott Disavino New York Oil prices, on Wednesday dropped, which held a second day near a five-month low, put under pressure by an increase in the US China trade tension and the prediction of the international energy agency of a 2026 supply. US Western Texas -Tuss -centers of futures dropped 14 cents, or 0.2%, to $ 58.56. Both benchmarks have been on their way to their lowest closure since May 7 for a second day in a row. Bank of America said Brent prices could slide below $ 50 a barrel as trading in the VS China increases while OPEC production arises. The IEA said on Tuesday that the global oil market could face a surplus of up to 4 million barrels per day next year, wider than the previous forecast, as OPEC and others increase production and demand. The trade dispute between the world’s two largest oil consumers has stopped again over the past week, with the US and China imposing additional port fees on ships carrying load between them. The tit-for-TAT movements can disrupt global cargo flow. US Treasury Secretary Scott Besent on Wednesday demanded that Washington not want to escalate the trade conflict, and emphasized that President Donald Trump is ready to meet Chinese President Xi Jinping in South Korea later this month. Last week, China announced that it will increase rare Earth export control, and Trump has threatened to increase the rates on Chinese goods to 100% and tighten the export of software from November 1. Deflationary pressure continued in China, with both consumer and producer prices falling in September, as a prolonged real estate market was also spotted. In the US, investors are more convinced that the Federal Reserve will lower interest rates. On Tuesday, Fed Jerome Powell chairman left the door open to cut further cuts, saying the end of the long attempt of the central bank to shrink the size of its interest could be close. Loser economic policy can increase economic growth and demand for oil. Britain on Wednesday targeted the two largest oil companies, Lukoil and Rosneft, and 51 Shadow Fleet tankers in what it described as a new bid to sharpen energy sanctions and choking Kremlin income. According to the US energy data, Russia was the second largest producer of crude oil in the world to the US. Any increase in sanctions due to the war of Moscow with Ukraine should keep more of the oil out of the world markets. In Azerbaijan, oil production fell 4.2% to 20.7 million tonnes in January-September from 21.6 million tonnes a year earlier, the Ministry of Energy said Wednesday. Azerbaijan is a member of the OPEC group countries, the organization of the petroleum exporting countries and allies. US oil supply The US Petroleum Institute Trade Group and the US Energy Information Administration will release US stock data on Wednesday and Thursday weekly, [EIA/S] [I/S] A day later than usual due to American Columbus Day/Indigenous Peoples’ day holiday on Monday. Analysts predict that US CRD stock rose by about 0.2 million barrels last week. If correct, it would be the first time that energy companies have been added to oil for three weeks for three weeks since April. This compares with a decline of 2.2 million barrels during the same week last year and an average increase of 1.1 million barrels over the past five years. This article was generated from an automated news agency feed without edits to text.