Oil Under Pressure, Hopes Pinned on US-China
World oil prices weakened again as the market began to worry about a global oversupply. Recent data showed that the volume of crude oil shipped by sea reached a record high, indicating that producers continue to increase volumes even as demand begins to slow. This has fueled concerns that the market will be flooded with supplies in the coming months.
The International Energy Agency even projects that the oil oversupply could reach its highest level next year, as production increases from OPEC+ countries and other producers outside the group. Some analysts say that current supply growth is far outpacing demand growth, leading the market to face an "oversupply" condition in the near future.
Meanwhile, market participants are also closely monitoring developments in trade talks between the United States and China. Initial meetings will take place in Malaysia this week, ahead of a meeting between President Trump and President Xi Jinping later this month. The outcome of these negotiations has the potential to influence energy market sentiment, especially if they result in an agreement that could boost global economic growth.
Oil futures for next-month delivery recorded further declines, marking the third consecutive month of weakness. Besides concerns about a surplus, this weakening also indicates that traders are becoming pessimistic about the short-term outlook for oil prices, although some remain hopeful for a positive outcome from international trade negotiations. (asd)
Source: Newsmaker.id
