Crude oil prices fell Wednesday, extending recent losses as traders weighed a rising supply outlook against ongoing worries about global demand. West Texas Intermediate (WTI) slipped 0.27% to $58.54 per barrel, while Brent crude dropped 0.34% to $62.18, hitting five-month lows.
The downturn comes amid fresh warnings of a potential supply glut. The International Energy Agency (IEA) has cautioned that the oil market could face a surplus of up to 4 million barrels per day in 2026, driven by rising production from both OPEC+ and non-OPEC countries, even as demand growth remains sluggish.
Concerns over U.S.–China trade tensions have also weighed on sentiment, with fears that renewed tariffs could dampen global growth and, in turn, energy consumption.
In the U.S., analysts expect a modest decline in commercial crude inventories this week, following a recent build. The latest EIA Short-Term Energy Outlook raised U.S. production forecasts, projecting output to average 13.5 million barrels per day in both 2025 and 2026, adding further downward pressure on prices.
Looking ahead, oil markets are expected to remain volatile. Traders are closely watching upcoming EIA and API inventory reports, Chinese industrial activity data, and any new statements from OPEC+ for guidance on near-term price direction.
IBT's Oil Market Watch will continue tracking daily WTI and Brent movements, U.S. supply trends, OPEC+ policy updates, and global demand indicators shaping the energy market.
