Oil prices extended losses for a second straight session on Tuesday amid mounting concerns over excess supply and weakening demand due to escalating tensions between the US and China, the world's largest oil consumers. Brent crude slipped 17 cents, or 0.28 per cent, to $60.84 a barrel, while the expiring US West Texas Intermediate (WTI) November contract fell 0.52 per cent to $57.22. The more active December WTI contract declined 19 cents to $56.83. Both benchmarks have entered a contango structure, signalling oversupply and softening demand, as OPEC+ continues to increase production. Analysts expect a crude surplus this year and next, with the International Energy Agency (IEA) forecasting an excess of nearly 4 million barrels per day (bpd) in 2026. Goldman Sachs now sees Brent dropping to $52 by late 2026, citing rising inventories and early signs of the anticipated global glut. A Reuters poll also indicated that US crude stockpiles likely grew last week, further weighing on sentiment. Attribution: Reuters
