WTI crude oil futures extended its recent losses toward $58 per barrel on Wednesday, hovering near its lowest level since May, pressured by expectations of a global supply glut and concerns over the economic fallout from US-China trade tensions. The International Energy Agency warned that the oil market could face an unprecedented surplus next year, with supply projected to exceed demand by nearly 4 million barrels per day, a larger glut than previously forecast. The agency attributed the looming oversupply to rising output from OPEC+ and other producers amid persistently weak consumption. Meanwhile, the US and China exchanged fresh trade blows, fueling concerns that the ongoing tit-for-tat between the two powerhouses could further weigh on global consumption. Investors now await weekly inventory data for additional demand cues.
