(Reuters) -Oil prices fell on Tuesday on concerns about excess supply and risks to demand stemming from tensions between the U.S. and China, the world’s top two oil consumers, even as President Donald Trump said he expected to reach a trade deal.
Brent crude futures fell 14 cents, or 0.2%, at $60.87 a barrel at 0005 GMT. The U.S. West Texas Intermediate crude (WTI) contract for November delivery, set to expire on Tuesday, eased 0.1% to $57.45. The more-active December contract was down 13 cents, or 0.2%, at $56.89.
U.S. President Donald Trump said on Monday he expects to reach a fair trade deal with Chinese President Xi Jinping. Disputes over tariffs, technology and market access remain unresolved ahead of their planned meeting in South Korea next week.
“I think we’ll end up with a very strong trade deal. Both of us will be happy,” Trump said.
Ritterbusch and Associates said in a note that the near-term trading stance on crude remains bearish, favoring selling into price advances rather than buying pullbacks.
“But, we also feel that enough geopolitical uncertainty remains to occasionally offset oil balances that are becoming more negative with each passing week,” they added.
U.S. crude oil stockpiles likely rose last week, a preliminary Reuters poll on Monday showed, ahead of weekly reports from the American Petroleum Institute and the Energy Information Administration. [EIA/S]
In Russia, Rosneft-controlled Novokuibyshevsk refinery in the Volga region halted primary crude processing on Sunday following a drone attack. Separately, a strike on the Orenburg gas plant forced neighboring Kazakhstan to cut output at its Karachaganak oil and gas condensate field by 25% to 30%.
Ambiguity around Russian oil supply persists, as Trump reiterated that India could face “massive” tariffs unless it halts purchases of Russian crude. India has become the leading buyer of discounted Russian oil following Western sanctions on Moscow.
Oil prices have been falling partly due to a bearish outlook last week from the International Energy Agency, which projected the global oil market could face a surplus of nearly 4 million barrels per day in 2026, as OPEC+ producers and rivals ramp up output while demand remains sluggish.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Sonali Paul)
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