Global oil prices started the week lower amid concerns about oversupply and renewed escalation of US-China trade tensions. Brent crude fell 0.3% to $61.11 per barrel, while US WTI crude dropped 0.3% to $57.37.
According to analysts, investor concerns have shifted from oversupply to oversupply. The “contango” pattern seen in Brent futures—meaning higher prices for future deliveries—reflects traders stockpiling oil with the expectation of selling it at a higher price later.
This pattern reappeared last week for the first time since May and deepened to the minus 30 cents level.The narrowing of the “backwardation” in market terms indicates that investors are making less profit from selling in the short term and that near-term supply is strong.
Both oil indicators lost more than 2% last week, marking the third consecutive weekly decline.
The decline was also influenced by the International Energy Agency’s forecast of an increasing supply surplus for 2026. Meanwhile, the head of the World Trade Organization called on the US and China to de-escalate tensions, warning that a rift between the two countries could reduce global economic output by 7%. Furthermore, US President Donald Trump said that if India continues to import Russian oil, he will continue to impose “large tariffs” on the country. These statements further increased the uncertainty surrounding global oil supply and trade flows.
