FX.co ★ WTI Crude Extends Decline

WTI crude oil futures fell to approximately $56.8 per barrel on Tuesday, marking a continuation of the decline from the previous day. This drop is largely attributed to increasing apprehensions about a global oversupply and the ongoing uncertainties in US-China trade talks, which have kept investors wary. Notably, the volume of crude stored at sea has reached an unprecedented level, indicating a worsening market imbalance and supporting the current pessimistic outlook. Statistical data as of the week ending October 17 reveals that around 1.24 billion barrels of crude and condensate are currently being transported by tankers, a slight increase from the prior week’s adjusted figure of 1.22 billion barrels. Investors are also focusing on the imminent discussions between US and Chinese representatives in Malaysia, perceived as a crucial lead-up to a pivotal summit between President Donald Trump and President Xi Jinping set for later this month.