Oil Slips on US-China Tensions, IEA Outlook

2025-10-14 18:53 By Mojdeh Kazemi 1 min. read

WTI crude oil futures dropped 1.3% to settle at $58.7 a barrel on Tuesday, recovering slightly after hitting a five-month low earlier in the session, as escalating US-China tensions and a bearish outlook from the International Energy Agency weighed on sentiment.

Beijing announced sanctions on five US-linked subsidiaries of South Korean shipbuilder Hanwha Ocean and hinted at further retaliatory measures following Washington’s new trade restrictions, heightening market uncertainty.

The IEA projected a record global oil surplus of nearly 4 million barrels per day in 2026, up 18% from its previous forecast, as OPEC+ ramps up production and rival output continues to strengthen.

The agency also cut its demand growth forecast, citing a weaker economic outlook, while several industry executives warned that gasoline and diesel demand may have already peaked.



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