Oil prices fell on Monday, October 20, due to a likely global oversupply, as escalating trade tensions between the US and China heightened fears of an economic slowdown and lower energy demand.
This is what Ekonomichna Pravda writes with reference to Reuters.
The report says that futures for Brent crude oil fell by 24 cents (0.4%) to USD 61.05 per barrel.
Prices for US West Texas Intermediate crude oil decreased by 21 cents (0.4%) to USD 57.33 per barrel.
Both fell by more than 2% last week, the third consecutive weekly decline, partly due to the International Energy Agency's forecast of a growing oversupply in 2026.
"Concerns about oversupply due to increased production by oil-producing countries, as well as an economic slowdown caused by escalating trade tensions between the US and China, are fueling the selling pressure," said Toshitaka Tazawa, an analyst at Fujitomi Securities.
"While the US is increasing pressure on buyers of Russian crude oil, the upcoming summit between US President Donald Trump and Russian President Vladimir Putin adds to the uncertainty of the outlook, making it difficult for some investors to adjust their positions," he added.
The head of the World Trade Organization said last week that she called on the United States and China to de-escalate trade tensions, warning that a disconnect between the world's two largest economies could cut global economic output by 7% in the long run.
The two largest oil consumers recently reignited their trade war by imposing additional port fees on ships carrying cargo between them, reciprocal moves that could disrupt global cargo flows.
Meanwhile, Trump and Putin agreed on Thursday to hold another summit on the war in Ukraine, even as Washington pressured India and China to stop buying russian oil
As the Ukrainian News agency earlier reported, eight members of the Organization of the Petroleum Exporting Countries (OPEC) will increase oil production by 137,000 barrels per day in November this year.
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