Oil prices fell as the tensions between China and the United States rose, reducing the demand for high-risk assets, while the international energy agency increased its estimates of a record rough. West -texas -Inintermediate rough fell 1.3% on Tuesday to settle near $ 59 a barrel, the lowest level since May, while Brent -rough won about $ 62. In the latest reciprocal step 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 hit further retaliation. The International Energy Agency expects a record surplus in 2026. The Paris-based agency raised its expectations for an unprecedented surplus in oil supply for the year 2026, saying that global supplies of crude oil will exceed about 4 million barrels per day next year, in the largest annual surplus ever. On Tuesday, the US chairman of the Federal Reserve Jerome Powell reinforced expectations that monetary policymakers will lower interest rates in October after lowering interest rates, amid the weakness in the labor market. Frank Monkham, head of Macro trading at Buffalo Bayou Commodities, said: “The low of the intraday from oil came today in response to an improvement in the risk after Powell’s Dovish remarks about quantitative relief.” He added: “Nevertheless, with oil principles staying in a downward trend, the $ 60-62 level in WTI probably forms a strong resistance if the setback continues.” A decrease in oil price expectations. The expected surplus rose by about 18% compared to last month’s estimates, at a time when the OPEC+ Alliance decided to increase production, and expectations regarding the production of competitors outside the group strengthened. A number of big oil trade operations in London said they expect a further decline in crude prices. Ben Lowcock, head of Global Oil at Trafigura Group, warned that the beginning of a long -awaited surplus in the oil market is “threatening”, while Gunvor CEO Torbjörn Tornqvist said that the demand for gasoline and diesel may have peaked. Oil recorded losses in August and September, and the intermediate rough of West Texas has fallen by about 19% since the beginning of the year. This decline is due to the growing fear that global supply will exceed demand, as many Wall Street banks expect futures prices to return to the fifties a barrel. Baved signs and increased trading tensions come up in the market, including the returns of futures prices to a state in some parts of the price curve, with some short -term contracts lower than long -term. The tensions between the United States and China have worsened, as US Treasury Secretary Scott Besent said that Beijing did not respond to Washington inquiries this weekend after announcing restrictions on the export, while China indicated that it would keep communication channels open. Opec’s expectations and Marklees Opec said in its monthly report released on Monday that global demand will grow by 1.3 million barrels per day this year and 1.4 million in 2026, in an optimistic tone on market expectations. The BEE group expected the coalition to avoid a significant increase in stock in the first quarter of next year to avoid a significant increase in stock, and the group’s chief commodity analyst, Bjarne Schildrup, wrote in a note: “Oil prices are likely to fall further until the coalition returns to the reduction path.”
Oil prices drop as trade tensions between Washington and Beijing escalate
