Oil Prices Decline for Second Consecutive Day Amid Oversupply and U.S.-China Tensions

PUKMEDIA

Oil prices.

Oil prices fell for a second consecutive day on Tuesday, 21 October 2025, as mounting concerns over an oversupply in the market and demand risks stemming from escalating tensions between the United States and China — the world’s two largest oil consumers — continued to weigh on sentiment.

According to Reuters, Brent crude futures dropped by 17 cents, or 0.28%, to $60.84 a barrel as of 03:43 GMT, while U.S. West Texas Intermediate (WTI) crude for November delivery — set to expire on Tuesday — fell 0.52% to $57.22. The more active December contract declined by 19 cents, or 0.33%, to $56.83.

Prices on Monday fell to their lowest level since early May, pressured by concerns that the latest escalation in the U.S.-China trade dispute could slow global economic growth and weaken energy demand.

Both WTI and Brent have shifted into a contango structure, where near-term prices are lower than those for later delivery — a pattern that typically signals an abundance of supply and weakening demand.

The market has also been hit by the OPEC+ alliance’s continued plans to increase oil output, a move that analysts say could lead to a crude surplus this year and next. The International Energy Agency (IEA) recently projected a global surplus of nearly 4 million barrels per day by 2026.



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