27.10.202508:45:44UTC+00Oil Prices Reverse Early Gains

WTI crude oil futures declined to approximately $61 per barrel on Monday, as concerns about a robust global supply overshadowed the positive sentiment surrounding a prospective US-China trade agreement. Initially, oil prices saw an uptick following an announcement by US Treasury Secretary Scott Bessent, who revealed the establishment of a "substantial framework" with Chinese Vice Premier He Lifeng. This framework is set to be further deliberated when the leaders of the two nations convene later this week. The discussions encompassed a variety of topics such as export controls, tariff suspensions, fentanyl-related tariffs, and agricultural trade. Additional support for oil prices stemmed from ongoing apprehensions regarding Russian supply. The United States has levied new sanctions on Rosneft and Lukoil, companies responsible for around half of Russia’s daily oil output. Nonetheless, the International Energy Agency (IEA) highlighted that the oil market is likely to experience a surplus, as production from the so-called “American quintet”—comprising the US, Canada, Brazil, Guyana, and Argentina—continues to surpass the growth in demand.