"WTI crude oil futures retreated below USD 61 per barrel on Tuesday, as persistent oversupply fears overshadowed recent OPEC+ policy decisions. Forecasts of a significant global surplus by 2026, potentially as high as 4 million barrels per day, could continue to weigh on sentiment and push prices lower. Surging output from non-OPEC+ producers, including the United States, Brazil, and Canada, could drive the expected supply glut."
"However, OPEC+'s decision to pause further production hikes through the first quarter of 2026 could limit downside risks to some extent. Compounding the bearish outlook are soft demand signals. Mixed factory data in Asia, weak global manufacturing PMIs could cap buying appetite from importers. While supply risks remain, including the impact of US sanctions on Russian oil majors and the effects on geopolitical tensions on energy infrastructure in Eastern Europe, the market could continue to see downside pressure."
WTI crude futures slipped below USD 61 per barrel as persistent oversupply concerns pressured prices. Global supply forecasts point to a significant surplus by 2026, potentially reaching 4 million barrels per day, which would depress market sentiment. Rapid production gains from non-OPEC+ producers, notably the United States, Brazil, and Canada, are major contributors to the projected glut. OPEC+ agreed to pause further production hikes through the first quarter of 2026, offering some limited support to prices. Soft demand indicators, including mixed Asian factory data and weak global manufacturing PMIs, are capping importers' buying appetite. Market focus shifts to upcoming API and EIA data for demand signals.
Read at London Business News | Londonlovesbusiness.com
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