Oil prices hit 5-month low

VTV.vn - World oil prices fell to their lowest level in more than five months on October 21, as investors worried about the risk of global oversupply.

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World oil prices fell to their lowest level in more than five months on October 21st due to concerns about global oversupply, amid escalating US-China trade tensions that threaten economic growth prospects and energy demand.

At the close of trading, Brent crude fell 0.46% to $61.01 a barrel, while US WTI crude edged down 0.03% to $57.52 a barrel – both hitting their lowest levels since early May. The oil market entered a contango state, with early delivery prices falling below late delivery prices, indicating growing concerns about oversupply.

Brent's contango spread is currently at its highest level since December 2023. John Kilduff, a partner at Again Capital, suggests that the trend of oil stockpiling is increasing, reflecting a rare pessimistic sentiment in the market.

Both Brent and WTI fell more than 2% last week – their third consecutive weekly decline – after the IEA warned that oversupply could persist into 2026. Meanwhile, the number of US oil rigs rebounded, signaling continued ample supply.

The market is also being impacted by US-China trade tensions as the two countries impose additional port fees on cargo ships, disrupting global shipping flows. The WTO warns that a decoupling of the two largest economies could reduce global economic output by up to 7% in the long term.

Several factors have somewhat limited the decline in oil prices, with major US corporations such as Oracle, Amazon, and Exxon Mobil urging the Trump administration to temporarily halt regulations disrupting exports. However, tensions continued to escalate when Trump asserted that the US would maintain “massive tariffs” on India if it did not stop buying oil from Russia.

Source: https://vtv.vn/gia-dau-cham-day-5-thang-100251021153536655.htm