Oil prices continued to fall this week as global trade tensions and oversupply fears weighed on investor confidence. The decline marks the third straight week of losses for global oil markets, highlighting growing anxiety about slowing demand and increasing production.
Brent crude slipped by 24 cents to trade near $61 per barrel, while U.S. West Texas Intermediate dropped 21 cents to around $57. Both benchmarks lost more than two percent last week as the International Energy Agency warned of a potential supply glut in 2026. Analysts say these factors continue to pressure prices and discourage new buying.
According to Toshitaka Tazawa from Fujitomi Securities, rising production from major oil-producing nations and concerns about weaker global growth are fueling the latest round of selling. He added that ongoing uncertainty surrounding relations between the United States and Russia makes the market more unstable. Investors are finding it difficult to plan as political and trade risks increase.
The global oil market faces additional strain from renewed U.S.-China trade friction. Both countries recently introduced new port fees on cargo shipments, escalating their economic confrontation. The tit-for-tat measures could disrupt international shipping and energy flows, further reducing oil demand. The World Trade Organization has already warned that continued tension between the two largest economies might cut global output by as much as seven percent in the long run.
Meanwhile, diplomatic developments add more uncertainty. The United States and Russia agreed to hold another summit to discuss the war in Ukraine. Despite calls from Washington for India and China to stop purchasing Russian oil, trade experts believe China could benefit from cheaper supplies if India reduces its imports.
At the same time, U.S. President Donald Trump urged both Ukraine and Russia to halt fighting immediately, even suggesting territorial concessions to end the conflict. Analysts believe these mixed signals from global leaders are unsettling markets and complicating the supply outlook.
The increase in rigs could add to supply pressure, especially if global demand continues to weaken.
Overall, the global oil market remains under stress as geopolitical tensions and economic risks continue to dominate investor sentiment. Until trade relations stabilize and demand expectations recover, oil prices may face ongoing downward pressure in the coming weeks.