Petrol Prices Decline Due to Supply Surplus and Trade Tensions

Global Oil Market Decline Continues

Oil prices continue to decline as investors take into account the potential supply surplus warning issued by the International Energy Agency (IEA) for the year 2026. Additionally, the trade tensions between the United States and China are creating concerns in the markets due to their negative impact on demand. In this context, the price of Brent crude oil fell by 21 cents (0.34%) to $62.18 per barrel. On the other hand, West Texas Intermediate (WTI) crude oil also decreased by 16 cents (0.27%), trading at $58.54 per barrel.

US-China Trade Dispute Back on the Agenda

The trade war between the world’s two largest oil consumers, the United States and China, has reignited. Both countries have started to implement additional port fees on ships, deepening the trade disagreements. Market analysts are focusing on the risks this situation could pose to the global economy. IG analyst Tony Sycamore stated, "The market's focus will remain on the resurgence of US-China tensions and the risks it may create for the global economy."

Supply Surplus and Stock Data Under Scrutiny

In addition to trade negotiations, one of the key factors influencing oil prices is the increase in global oil stocks. Haitong Futures analyst Yang An commented on the current situation, noting that crude oil stocks in the US increased last week, while gasoline and distillate product stocks decreased. The industry’s leading report from the American Petroleum Institute is expected to be released today at 11:30 PM, while data from the US Energy Information Administration (EIA) is expected to be announced on Thursday at 5:30 PM. Analysts warn that these figures could affect market trends.