Brent declines amid oversupply fears
The front-month ICE Brent contract has declined by $0.66/bbl on the day, to trade at $64.43/bbl at 09.00 GMT.
IMAGE: Oil storage tanks. Getty Images
Upward pressure:
Progress in the US-China trade deal has put some upward pressure on Brent futures today. Both countries are expected to reach a preliminary ‘Framework Agreement’ later this week to ease tariff tensions.
US Treasury Secretary Scott Bessent said earlier that negotiators from both sides have agreed on a potential trade framework that eliminates the immediate threat of a 100% tariff escalation on Chinese imports.
US President Donald Trump and his Chinese counterpart Xi Jinping are scheduled to meet in South Korea on Thursday.
“The accord, which will be formalized during the upcoming Trump–Xi meeting in South Korea, represents a limited but meaningful de-escalation in a trade relationship that has repeatedly cycled through confrontation and temporary truces,” SPI Asset Management managing partner Stephen Innes noted.
Downward pressure:
Concerns of a potential supply glut in the global market have once again weighed on Brent’s price.
Oil has moved lower after a Bloomberg report suggested that OPEC+ may announce another monthly increase of 137,000 b/d for December.
Eight members of the OPEC+ coalition are scheduled to meet on 2 November to decide on December production policy.
Meanwhile, some OPEC members, including Kuwait and the UAE, “have suggested that any fall in Russia supply could be met with further increases,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
By Aparupa Mazumder
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