Oil prices fell on Wednesday, extending losses from the previous session, as investors assessed the International Energy Agency's warnings about a potential oversupply over the next year, as well as escalating trade tensions between the US and China.
Brent crude futures fell 0.3% to $62.17 per barrel, while US West Texas Intermediate crude futures fell 0.2% to $58.53 per barrel.
Both crudes closed Tuesday at their lowest levels in five months.
The International Energy Agency said on Tuesday that the global oil market could face a supply surplus of around four million barrels per day next year, a level higher than previously expected, due to increased production by OPEC+ and its competitors, along with continued weak global demand.
Trade tensions between the United States and China escalated last week after Beijing tightened restrictions on rare earth exports, while US President Donald Trump threatened to impose tariffs of up to 100% on Chinese goods, in addition to tightening restrictions on software exports starting November 1.
Apart from the US-China trade relationship and the progress of the talks, the main factor driving oil prices currently is the oversupply, which is clearly evident in the changes in global inventories, Yang An, an analyst at Haitong Futures, told Reuters.
