Asian oil prices extended decline from previous session

Oil prices fell on October 15 in Asia, extending losses from the previous session, as investors weighed the International Energy Agency's (IEA) warning of a supply glut by 2026 and US-China trade tensions that could curb demand.

An oil refinery in Karbala, Iraq. Photo: AFP/TTXVN

Brent crude futures fell 9 US cents, or 0.14%, to $62.30 a barrel at 1:40 p.m. on October 15 (Vietnam time), while US West Texas Intermediate (WTI) crude futures fell 3 US cents, or 0.05%, to $58.67 a barrel.

Emril Jamil, oil analyst at global financial data and infrastructure firm LSEG, said the market was focused on oversupply as geopolitical risks were easing and escalating trade tensions were also adding to pressure on prices.

The IEA said on October 14 that the global oil market could face a supply surplus of up to 4 million barrels per day next year, a larger surplus than previously forecast, as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, also known as OPEC+, and competitors increase production while demand remains stagnant.

Meanwhile, trade tensions between the US and China, the world’s two largest oil consumers, have flared up again this week, with both imposing additional port fees on cargo ships between the two countries. This will increase trade costs and disrupt the flow of goods, with the risk of reducing economic output.

Trade tensions between the world's two largest economies increased after China announced last week a significant expansion of controls on rare earth exports, while US President Donald Trump threatened to impose additional 100% tariffs on Chinese goods and tighten restrictions on software exports from November 1.

Apart from the US-China trade relationship and the progress of negotiations, the key factor for oil prices now is the level of oversupply, as shown by changes in global inventories, said Yang An, an analyst at risk management firm Haitong Futures.

To gauge U.S. demand, traders will be looking ahead to weekly inventory data. U.S. crude inventories are estimated to have risen by an average of 200,000 barrels in the week to Oct. 10, according to a preliminary Reuters poll.

The American Petroleum Institute's weekly report is scheduled to be released on October 16 (Vietnam time) and that of the US Energy Information Administration a day later.

Source: https://baotintuc.vn/thi-truong-tien-te/gia-dau-chau-a-keo-dai-da-giam-tu-phien-truoc-20251015144621127.htm