World oil prices fall to lowest level in nearly 5 years

A growing crude oil glut coupled with concerns about the global economy has sent crude prices to their lowest levels since the energy market recovered from the COVID-19 pandemic crash.

Illustration photo: THX/TTXVN

According to the Vietnam News Agency correspondent in New York, at the close of trading on October 16, the price of US West Texas Intermediate (WTI) crude oil futures for December 2025 delivery fell to $56.99 per barrel, down 2.2% from the opening price and down 19% compared to the same period last year, the lowest level since February 2021.

This week's price drop has pushed oil prices even lower than during the spring sell-off, when US President Donald Trump announced plans to impose retaliatory tariffs, raising concerns about global economic instability. The lower oil prices are good news for American consumers, as cheaper crude oil will lead to lower prices for gasoline, diesel, jet fuel, and heating oil. However, it's a worrying sign for the US oil and gas industry, with shrinking profit margins and thousands of job cuts.

Oil prices have fallen due to several factors. Most notably, concerns about oversupply and the risk of a renewed US-China trade war are a major concern. The International Energy Agency (IEA) and many other energy market forecasting organizations believe that oversupply will continue to increase in the coming months, as producers from the Middle East to Texas continue to pump oil into the market despite sharply falling prices. The latest data from the US Energy Information Agency (EIA) shows that US oil production reached a new record of over 13.6 million barrels per day in July 2025.

Simultaneously, the Organization of Petroleum Exporting Countries (OPEC) and its partners, known as OPEC+, reversed their decision to cut production, a process initiated in 2023 when oil prices fell from their peak following the conflict in Ukraine. OPEC's goal is to regain market share from independent producers in the US, Brazil, Guyana, and other countries—rivals with whom OPEC has repeatedly clashed in price wars over the past decade.

Furthermore, US-China trade tensions have created new concerns, threatening the outlook for global economic growth. In the past week, the world's two largest economies have issued a series of warnings and taken tough retaliatory actions against each other.

Source: https://baotintuc.vn/thi-truong-tien-te/gia-dau-the-gioi-giam-xuong-muc-thap-nhat-trong-gan-5-nam-20251017074025946.htm