Oil Steady, Market Weighs Surplus and US-China Trade
Oil held steady as the market weighed signs of a widening surplus ahead of this week's US-China trade talks. West Texas Intermediate was near $57 per barrel, while Brent was around $60 on Tuesday. Vortexa data showed the amount of oil on seaborne tankers hit a record as producers continued to increase supply while demand growth slowed.
Price pressures remain. Oil is headed for a third monthly decline due to expectations of a widening surplus. Some projections even see Brent at risk of falling to around $50 per barrel next year. In the derivatives market, the timeframe for both benchmarks ensures ample supply.
Another focus is the negotiating agenda. Negotiators from the US and China are meeting in Malaysia this week, ahead of a planned meeting between President Donald Trump and President Xi Jinping at the end of the month. The outcome of the talks could impact future energy demand.
For the contract, the WTI November delivery contract, which expired Tuesday morning, was virtually unchanged at $57.47 per barrel at 7:35 a.m. Singapore time. The December contract is hovering around $57. Brent for December delivery closed down about half a percent at $61.01 per barrel on Monday.
Key Points
- Supply at sea reaches record levels, surplus signals increase
- Price pressure persists, risk declines for third month
- US-China talks become a demand catalyst
- Spread timing indicates loose supply (asd)
Source: Newsmaker.id
