Oil prices experienced a slight decline of 0.2% as investors expressed concerns over US-China trade tensions and increasing stockpiles.
The price of Brent crude settled at $60.87 per barrel, reflecting a decrease of 14 cents. Meanwhile, US West Texas Intermediate (WTI) for November fell by 0.1% to $57.45, while December futures decreased by 0.2% to $56.89.
President Donald Trump stated that he anticipates a “fair trade deal” with China’s Xi Jinping during their upcoming meeting in South Korea next week. Ongoing disputes regarding tariffs, technology, and market access continue to be a concern. Analyst John Kilduff from Again Capital observed, “Trump’s comments provide hope, but uncertainty remains, which is putting pressure on prices.”
#FPWorld | Oil prices hit their lowest since early May as concerns over a potential global glut and US-China trade tensions weighed on demand.https://t.co/tqu8BmgYMB
— Firstpost (@firstpost) October 21, 2025Ritterbusch and Associates called the outlook bearish, favouring sales on rallies, though geopolitics could offset negatives.
A Reuters poll forecast rising US crude stockpiles last week. Russia’s Rosneft refinery halted processing after a drone attack, and Kazakhstan cut Karachaganak output by 25–30% due to Orenburg gas plant strikes. Trump reiterated “massive” tariffs on India unless it stops buying Russian oil, its leading supplier post-sanctions.
Read: Canadian Dollar Falls 0.1% Amid Oil Decline and US Trade Talks
The International Energy Agency has predicted a surplus of 4 million barrels per day by 2026, as OPEC+ and other producers increase their output. This anticipated surplus is putting downward pressure on oil prices. The decline in oil prices indicates potential supply gluts and trade risks, which could affect global economies. A trade agreement between the US and China could help stabilise prices.
