Oil Slips on Oversupply Fears and Renewed U.S.–China Trade Tensions

Oil prices edged lower on Monday amid worries of a global supply glut and mounting U.S.–China trade tensions that threaten to weaken energy demand.

Brent crude fell 0.86% to $60.76 a barrel, while WTI dropped 0.96% to $56.99, giving back Friday’s gains. Both benchmarks have now logged three straight weekly declines, pressured by the IEA’s warning of a potential supply surplus in 2026.

Analysts said renewed trade frictions and slowing Chinese growth are weighing on sentiment, while geopolitical uncertainty—from U.S. pressure on India’s Russian oil purchases to upcoming Trump–Putin talks—adds further volatility.

Meanwhile, U.S. drillers increased oil and gas rigs last week for the first time in three weeks, signaling resilient supply.