WTI price loses ground due to persistent bearish sentiment as record-high volumes of crude stored at sea.
Oil prices struggle due to the ongoing uncertainties surrounding the US-China trade tensions.
Trump warned that India could face “massive” tariffs unless it ceases buying Russian crude.
West Texas Intermediate (WTI) Oil price remains subdued for the second successive session, trading around $56.80 per barrel during the Asian hours on Tuesday. Crude Oil prices struggle due to oversupply concerns; and demand risks are driven by the trade tensions between the United States (US) and China, world’s two largest economies.
The bearish sentiment surrounding the crude Oil prices strengthens as market imbalance widens, driven by record-high volumes of crude stored at sea. As of the week ending October 17, around 1.24 billion barrels of crude and condensate were being transported by tankers, up slightly from the revised total of 1.22 billion barrels the previous week.
US President Donald Trump also said he expects to reach a “fair deal” with China’s President Xi Jinping during their upcoming meeting in South Korea, signaling a possible easing of trade tensions. Disagreements over tariffs, technology, and market access remain unresolved ahead of their scheduled meeting in South Korea next week.
However, US Trade Representative Jamieson Greer adopted a tougher stance, accusing Beijing of engaging in a “broader pattern of economic coercion” targeting companies making strategic investments in critical US industries.
Rosneft-controlled Novokuibyshevsk refinery in Russia’s Volga region halted crude processing on Sunday after a drone attack. Another strike on the Orenburg gas plant prompted neighboring Kazakhstan to reduce output at its Karachaganak oil and gas condensate field by 25% to 30%.
Oil prices may receive support amid uncertainty around the Russian crude supply. Trump reiterated that India could face “massive” tariffs if it does not stop purchasing Russian crude. India has emerged as the largest buyer of discounted Russian oil following Western sanctions on Moscow, per Reuters.
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