Global crude oil prices are on track for their third consecutive weekly decline, as growing oversupply and renewed trade tensions between the United States and China continue to pressure the market. The combination of increasing supply and concerns over slowing global growth has created uncertainty for energy traders and producers worldwide.
As of this week, Brent Crude is trading at $61 per barrel, down by 2.9%, while West Texas Intermediate (WTI) stands at $57 per barrel. The sustained drop reflects weak sentiment across the market as investors assess how long the imbalance between supply and demand might persist.
The International Energy Agency (IEA) recently raised its projection for global oil oversupply next year by nearly 20%, signalling that the market could face an even larger surplus. This has sparked worries that production levels, particularly from Russia and the United States, may continue to outpace consumption.
Adding to these concerns are reports that US crude inventories have risen for the third straight week, reaching their highest levels since early September. While inventories at Cushing, Oklahoma (the main delivery hub for WTI) have dropped to July lows, the broader build-up in stockpiles points to a market still flush with supply.
Geopolitical events are further shaping oil price movements. The planned meeting between the US and Russian presidents to discuss ending the Ukraine conflict has raised expectations that Russian oil exports could increase, adding more barrels to the global supply chain.
At the same time, renewed trade tensions between the US and China are dampening global growth expectations, leading to fears of reduced energy demand from two of the world’s largest economies.
Indian refiners, among the biggest buyers of Russian crude, are considering reducing imports following recent US statements on Russian oil. However, they are waiting for official guidance from the Indian government before making changes to their procurement plans.
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With supply rising and demand showing signs of weakness, the near-term outlook for crude oil prices remains bearish. Market participants will closely watch how trade relations, inventory trends, and geopolitical developments evolve in the coming weeks.
Until then, oil markets are likely to remain volatile and under pressure, with limited signs of recovery in the short term.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Oct 20, 2025, 9:05 AM IST
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