FX.co ★ Oil Swings Near 4-1/2-Year Low

On Tuesday, West Texas Intermediate (WTI) crude oil futures climbed to $57.5 per barrel, staying close to the previous session's 4½-year low of $56.31. This movement comes amidst investor concerns regarding an oversupply ahead of the US-China trade discussions. According to data from Vortexa, there is a record amount of 1.24 billion barrels of crude and condensate being transported via tankers globally, indicating an increasing surplus due to continued production despite a decrease in demand. The International Energy Agency (IEA) has cautioned that global oil markets might experience an unprecedented surplus next year as OPEC+ and other producers continue to contribute additional supply even as demand growth decelerates. Analysts predict that US crude inventories likely rose again last week, contributing to the bearish market sentiment. Nonetheless, reductions in gasoline and distillates have offered some short-term support. Investors are keenly observing the forthcoming trade negotiations between the US and China, as well as a potential meeting between Presidents Trump and Xi.