Oversupply concerns continue to weigh on oil prices

Oil prices fell on the afternoon of October 20 due to pressure from concerns about global oversupply, as US-China trade tensions increased the risk of an economic recession and weaker energy demand.

Oil refinery in Dammam, Saudi Arabia. Photo: THX/TTXVN

At 2:10 p.m. (Vietnam time), Brent crude oil price fell 53 cents (0.86%) to 60.76 USD/barrel. US light sweet crude oil price (WTI) fell 55 cents (0.96%) to 56.99 USD/barrel, erasing the gains made last Friday (October 17).

Both oil benchmarks marked a third straight week of declines, with each down more than 2% last week, partly due to the International Energy Agency (IEA) forecasting a growing supply glut by 2026.

Concerns about the prospect of oversupply from oil-producing nations increasing output, combined with fears of an economic recession stemming from escalating US-China trade tensions, are driving the selling pressure, said analyst Toshitaka Tazawa at financial services firm Fujitomi Securities.

The two top oil consumers recently renewed their trade war by imposing additional port fees on ships carrying goods between them, a tit-for-tat move that could disrupt the global flow of goods.

In addition, data from China's National Bureau of Statistics (NBS) released on the same day, October 20, said that economic growth in the third quarter of 2025 slowed to its weakest pace in a year due to weak domestic demand, raising questions about China's dependence on exports amid unresolved trade tensions with the US.

In addition, the market still has concerns about Russian oil supplies, when US President Donald Trump on October 19 once again warned that the US will maintain "huge" tariffs on India unless the country stops buying Russian oil.

Source: https://baotintuc.vn/thi-truong-tien-te/noi-lo-du-cung-tiep-tuc-de-nang-len-gia-dau-20251020160204113.htm