FX.co ★ Oil Falls on Demand Worries

West Texas Intermediate (WTI) crude oil futures have edged closer to $61 per barrel as insights point towards a potential decline in demand coupled with an oversupply scenario. The International Energy Agency has significantly revised down its demand projection for 2025, cautioning that a global oil surplus might continue until 2026. Similarly, both OPEC and the U.S. Energy Information Administration have adjusted their forecasts downward, attributing this to decelerated economic growth, heightened trade tensions, and reduced fuel consumption. The ongoing tariff conflict initiated by President Trump has amplified fears of a worldwide economic slowdown, particularly affecting the United States and China, the two largest oil consumers. Although the temporary suspension of certain electronics tariffs has offered some market reprieve, the overall sentiment remains precarious. Compounding concerns regarding supply, OPEC+ has been accelerating production increases, and ongoing US-Iran nuclear negotiations could pave the way for additional Iranian crude to enter the market.