Oil Slips on US-China Tensions, IEA Outlook

On Tuesday, West Texas Intermediate (WTI) crude oil futures experienced a decline of 1.3%, closing at $58.7 per barrel. This came after recovering slightly from hitting a five-month low earlier in the day. The drop was influenced by growing tensions between the United States and China and a pessimistic forecast from the International Energy Agency (IEA), which affected market sentiment. In response to new trade restrictions imposed by Washington, Beijing announced sanctions on five U.S.-linked subsidiaries of the South Korean shipbuilder Hanwha Ocean and suggested additional retaliatory actions might follow, increasing market uncertainty. Furthermore, the IEA predicted an unprecedented global oil surplus of nearly 4 million barrels per day by 2026, representing an 18% increase from its previous estimates, as OPEC+ expands its production and production from competitors continues to rise. The agency also revised down its demand growth forecast, citing a less optimistic economic outlook, while several industry leaders expressed concerns that the demand for gasoline and diesel might have already reached its peak.

The material has been provided by - RobotFX.Org