Crude oil has experienced significant declines since the end of September. The risk of oversupply for next year grows.
He oil falls sharply in international markets after the dissemination of the latest reports from the Organization of Petroleum Exporting Countries (OPEC) and of the International Energy Agency (IEA). A slowdown in global consumption growth is projected, along with a “massive” increase in crude oil production in Septemberdriven mainly by the increase in supply from the countries of the OPEC+.
About noon, Brent crude futures for Decemberan indicator that is taken as a reference both in Europe and in Argentina, fell 2%, to $62. Similarly, the barrel WTI, from the United Statesfell to US$58, with also a drop of 2%. Both are found in its lowest level since early May.
This is a situation that deepens the declines of recent times. In the last three months, The two main indicators of the barrel of oil fell between 10 and 11%. From the platform XTB explained that this recent decline is driven by concerns about a possible global excess supply.
In this sense, they explained that the IEA “has increased its surplus forecast for 2026 to a record of 4 million barrels per day (mb/d)which would mean the largest annual ‘surplus’ in history.”
Although they stated that “a surplus of such magnitude seems unlikelythe combination between the production restoration policy of the OPEC+ and the lack of solid growth in global demand could lead to 2026 seeing the longest period of oversupply in more than a decade“
Source: Ambito
