Oil prices extended losses on Wednesday from the previous session, as investors weighed the International Energy Agency’s warning of a supply surplus in 2026.
Investors also fear that the U.S.-China trade tensions could curtail demand.
Brent crude futures fell 9 cents, or 0.14%, to $62.30 a barrel by 07:40 AM WAT, while U.S. West Texas Intermediate futures eased 3 cents, or 0.05%, to $58.67 a barrel.
Both contracts closed at five-month lows in the previous trading session.
The International Energy Agency said on Tuesday the global oil market could face a surplus next year of as much as four million barrels per day, a bigger glut than it earlier forecast, as OPEC+ producers and rivals raise output and demand remains sluggish.
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Trade dispute between the United States and China has reignited in the past week, with both countries imposing additional port fees on ships carrying cargo between them. That will raise trading costs and disrupt freight flows, likely lowering economic output.
Tensions between the world’s two largest economies and largest oil consumers intensified after China last week announced a major expansion of rare earth export controls, and U.S. President Donald Trump threatened to raise tariffs on Chinese goods to 100% and tighten software export curbs from November 1.
For a view on U.S. demand, traders will be awaiting weekly inventory data. U.S. crude oil stockpiles are expected to have risen last week, while gasoline and distillate inventories likely fell, according to a preliminary Reuters poll.
Orsted expanded rapidly over the past decade, but has recently faced higher costs from supply chain disruption and inflation.
Six analysts polled by Reuters estimated on average that crude inventories rose by about 200,000 barrels in the week to October 10.
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