Oil Prices Drop Amid Rising Global Supply, Weak U.S. Demand

Oil prices declined after several sessions of gains amid concerns over an oversupplied market, following revised forecasts from the International Energy Agency (IEA) projecting higher oil supply growth of 2.7 million barrels per day in 2025 and 2.1 million in 2026. Both Brent and WTI crude futures fell about 0.3 to 0.4 percent, pressured by weak spot demand and expectations of rising global inventories, as indicated by recent U.S. Energy Information Administration data showing a significant build in crude and gasoline stocks. Despite geopolitical tensions in the Middle East and Europe, including incidents involving Israel, Hamas, and Russian drone activities, traders viewed these as unlikely to disrupt oil flows immediately. Production increases by OPEC and its partners starting in October, though modest, also contribute to downward price pressure. Additionally, U.S. economic indicators suggest weakening demand, compounding supply concerns. President Donald Trump has urged European officials to impose high tariffs on China and India to pressure Russia, but reports indicate the European Union is unlikely to adopt such tariffs as it seeks a trade deal with India.