Oil prices declined for a second straight day, with benchmark Brent crude futures slipping to $60.84 a barrel and U.S. West Texas Intermediate crude (WTI) easing to $57.22.

The slide comes amid mounting concerns about a looming global supply glut and weakening demand, especially as trade tensions between the U.S. and China continue to weigh on outlooks.

The structure of futures markets turned more bearish, with analysts pointing to a “contango” pattern where near-term contracts trade at a discount to later delivery signalling abundant supply and slowing demand.

The International Energy Agency (IEA) forecast a global surplus nearing 4 million barrels per day in 2026, highlighting how production from the Organisation of the Petroleum Exporting Countries allies (OPEC+) and non-OPEC sources is outpacing demand growth.

Analysts at Goldman Sachs warned that if demand fails to rebound, Brent crude could slip further toward the low $50s per barrel later next year.

The energy sector now faces a difficult balance: while low prices help consumers, prolonged weakness could force producers to cut investment, delay projects or pivot to alternative energy sources, potentially reshaping long-term supply dynamics.

Source: Reuters.