US Plans 1M-Barrel Reserve Refill Amid Global Oil Surplus Concerns

Oil prices have risen modestly due to the U.S. government's plan to purchase 1 million barrels of crude oil to refill its Strategic Petroleum Reserve, providing support amid concerns of a global supply surplus. West Texas Intermediate and Brent crude prices increased slightly, buoyed by declines in U.S. crude inventories and hopes of a U.S.-China trade deal. Despite these gains, oil remains near a five-month low and on track for a third consecutive monthly loss, pressured by a potential global supply glut driven by rising crude on tankers and production increases from OPEC+ and other countries. President Donald Trump has asserted that India will reduce its imports of Russian oil, reflecting geopolitical factors influencing the market. Market analysts note that despite the U.S. purchase plan, bearish sentiment persists due to supply growth outpacing demand growth and the possibility of increased short selling by commodity traders. Overall, the oil market balances between supply risks and oversupply concerns, with ongoing geopolitical developments closely watched by traders.