Oil extended declines as investors weighed signs of a swelling surplus ahead of trade talks between the US and China later this week. Brent fell below $61 a barrel after falling 0.5% on Monday, while West Texas Intermediate was near $57. The amount of crude oil on tankers at sea rose to a record high as producers continued to add barrels, according to data from Vortexa. The supply build-up comes as demand growth slows. The International Energy Agency predicts a record oil surplus next year as the OPEC alliance and producers outside the group increase output. Futures are headed for a third monthly loss, and time spreads for both global benchmarks are starting to indicate a big supply. “We have supply growth three times faster than demand growth,” said Bob McNally, founder and president of Rapidan Energy Group, in an interview on Bloomberg Television. “We have almost an abundance.” A total of 1.24 billion barrels of crude and condensate – a light form of oil – moved on tankers in the week to October 17, according to analysis firm Vortexa. That’s up from a revised 1.22 billion barrels a week earlier. Meanwhile, negotiators from the US and China are expected to discuss trade at a meeting in Malaysia this week, ahead of a meeting between President Donald Trump and his Chinese counterpart Xi Jinping later this month. To get Bloomberg’s Energy Daily newsletter in your inbox, click here. ©2025 Bloomberg LP This article was generated from an automated news agency feed with no text modifications.
Oil falls as traders focus on surplus and US-China trade talks
