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 21 due to concerns about global oversupply, amid escalating US-China trade tensions, threatening economic growth prospects and energy demand.

At the end of the session, Brent crude fell 0.46% to $61.01 a barrel, while US WTI crude fell slightly by 0.03% to $57.52 a barrel - both hitting their lowest levels since early May. The oil market moved into a contango state, when early delivery prices were lower than late delivery prices, showing growing concerns about oversupply.

Brent’s contango is now at its highest level since December 2023. John Kilduff, a partner at Again Capital, said the trend of oil storage is increasing, reflecting a rare pessimism in the market.

Both Brent and WTI fell more than 2% last week – their third consecutive weekly decline – after the IEA warned the supply glut could last until 2026. Meanwhile, the number of US oil rigs rose again, signaling continued supply glut.

The market has also been affected by US-China trade tensions as the two countries imposed additional port fees on cargo ships, disrupting global shipping flows. The WTO has warned that a “decoupling” of the two largest economies could reduce world economic output by up to 7% in the long term.

Some factors have helped to limit the decline in oil prices, with major US corporations such as Oracle, Amazon and Exxon Mobil calling on the Trump administration to halt the export-disrupting rule. However, tensions have continued to escalate as Mr. Trump asserted that the United States will keep “massive tariffs” on India if it does not stop buying Russian oil.

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