"Crude oil prices were slightly lower today, with WTI hovering around the USD 57.5 level. Price action has been choppy and the rebounds have been struggling to extend, leaving crude oil prices on track for a weekly decline of more than 4%. The market could remain under pressure against a bearish medium-term outlook. The bigger driver remains oversupply expectations into 2026."
"While the IEA trimmed its surplus projections, it still sees an oversupply of 3.84 million bpd in 2026, a gap that keeps sentiment bearish and rebounds under pressure. However, traders have also been reacting to a certain extent to fresh supply risk headlines. In this regard, the United States is escalating pressure on Venezuela, which could affect the latter's oil flows."
WTI crude traded near USD 57.5 amid choppy price action and weak rebounds, leaving the market on track for a weekly drop exceeding 4%. A bearish medium-term outlook is weighing on sentiment. Oversupply expectations into 2026 remain the dominant driver. The IEA still projects a 3.84 million bpd surplus for 2026 despite trimming its surplus forecasts. Traders are also reacting to fresh supply-risk headlines, notably increased U.S. pressure on Venezuela after a tanker seizure and new measures targeting Venezuela-linked tankers. Shipping, insurance risks and Eastern European disruptions add further volatility and downside risk.
Read at London Business News | Londonlovesbusiness.com
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