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Oil Extends Slide on Glut Fears, Brent Near $61 as Third Weekly Drop Deepens

IEA warnings of a 2026 surplus are reinforcing a bearish market structure.

Overview

  • Brent traded around $61 a barrel and WTI near $57 in early Asian hours after both benchmarks logged a third straight weekly decline.
  • The IEA raised its supply outlook and flagged a potential surplus into 2026 as OPEC+ and other producers lift output.
  • U.S. supply signals stayed firm with energy firms adding rigs last week and market pricing tilting further into contango alongside rising storage concerns.
  • Renewed U.S.–China trade friction, including reciprocal port fees on cargo, is stoking worries about slower freight flows and weaker oil demand.
  • U.S. pressure on buyers of Russian crude and a planned TrumpPutin summit are injecting uncertainty into trade flows, with potential shifts for Indian and Chinese purchases.