FX.co ★ Brent Crude Oil Falls to 5-Month Low

Brent crude oil futures experienced a 2% decline on Tuesday, dropping to below $62 per barrel, marking a five-month low. This downturn followed the International Energy Agency's (IEA) market outlook, which amplified expectations of an increasing supply surplus. The IEA revised its forecast, predicting a global oil supply growth of 3 million barrels per day for the current year, and 2.4 million barrels per day by 2026. This adjustment is attributed to production increases from OPEC+ and robust output from the Americas. Conversely, the IEA reduced its estimates for demand growth to approximately 700,000 barrels per day for both this year and 2026. The agency cautioned that global inventories are likely to expand as significant crude shipments arrive at key locations, with stock buildups already noticeable in China and the United States. Additionally, OPEC's monthly report projected global demand growth of 1.3 million barrels per day this year and 1.4 million barrels per day by 2026, conveying a more optimistic view. Simultaneously, renewed trade tensions between the U.S. and China, alongside a cautious market sentiment, intensified the downward pressure on oil prices.