Oil prices hovered near a five-month low on Wednesday amid mounting US-China trade tensions and growing concerns over a global supply glut.
Brent crude was trading close to $62 a barrel after falling 1.5% on Tuesday, while West Texas Intermediate (WTI) slipped below $59.
The International Energy Agency (IEA) warned on Tuesday that the global oil market is expected to be oversupplied by nearly four million barrels per day next year—an increase of almost 20% from its previous forecast.
Oil has now fallen about 17% so far this year, pressured by a surge in output from the Opec+ alliance, which has expanded production in an attempt to recapture market share. The resulting increase in supply has heightened fears of a deepening glut.
The latest escalation in the US-China trade dispute has also stoked anxiety about weakening demand in the event of a broader global economic slowdown.
