Daijiworld Media Network – Singapore

Singapore, Oct 21: Oil prices continued to slide on Tuesday as markets reacted to mounting evidence of a growing global supply glut ahead of key trade discussions between the United States and China later this week.

Brent crude slipped below $61 a barrel, extending Monday’s 0.5% loss, while West Texas Intermediate (WTI) hovered near $57. The fall comes amid record-high volumes of oil stored on tankers at sea, suggesting producers are steadily adding to supply even as global demand growth weakens.

According to data from analytics firm Vortexa, about 1.24 billion barrels of crude and condensate were moving on tankers in the week ending October 17, up from 1.22 billion barrels the previous week. The surge in seaborne oil highlights a market imbalance that is likely to deepen in the coming months.

The International Energy Agency (IEA) has projected a record oil surplus next year, as both OPEC+ members and independent producers increase output amid sluggish consumption.

“Supply growth is running nearly three times faster than demand growth,” said Bob McNally, founder and president of Rapidan Energy Group, in an interview with Bloomberg Television. “In the near term, we have a glut.”

The imbalance has pushed oil futures toward a third consecutive monthly loss, with time spreads for both global benchmarks signaling abundant supply.

Meanwhile, attention is shifting to the US-China trade meeting set to take place in Malaysia later this week, ahead of a potential meeting between US President Donald Trump and Chinese President Xi Jinping later this month. The talks are expected to focus on trade tariffs and energy cooperation, with Washington reportedly planning to raise tariffs on select Indian goods, keeping global trade sentiment cautious.