Port Harcourt — WTI crude oil prices continued their decline, hitting USD 56 today, reflecting sustained market pressure.
The market remained affected by concerns around supply and demand. On the supply side, the market continued to face oversupply fears.
Record-high US oil production, exceeding 13.6 million barrels per day, coupled with a larger-than-expected crude inventory build of 3.5 million barrels, has fueled glut expectations.
This sentiment is amplified by the latest International Energy Agency (IEA) report, which forecasts a significant oil market surplus in the coming year due to surging supply from both OPEC+ and non-OPEC+ producers, particularly the Americas.
Simultaneously, demand prospects continue to deteriorate. The IEA has lowered its demand growth forecast, citing a harsher macroeconomic climate and the rise of vehicle electrification.
Escalating trade tensions are further dampening the outlook for energy consumption. Adding to the uncertainty, an upcoming meeting between President Trump and President Putin is creating speculation about the potential for eased sanctions on Russia, which could further increase global oil supply.
*Frank Walbaum Market Analyst at Naga
