Oil prices held steady on Wednesday following a sharp decline that pushed them to their lowest level in five months, as renewed fears of global oversupply and escalating trade frictions between the United States and China continued to rattle investors.
Brent crude, the international benchmark, traded around $62 per barrel, showing little movement after losing more than 10% over the past three weeks. The recent slide, which dragged prices to levels last seen in May, has been largely driven by concerns that supply growth continues to outpace demand amid a fragile global economic recovery.
Analysts say the oil market is grappling with a combination of challenges — including rising production from non-OPEC countries, persistent uncertainty around OPEC+ output policies, and signs of slower consumption in major importing nations. Together, these factors have dampened hopes for a sustained price rebound despite ongoing geopolitical tensions in the Middle East and parts of Eastern Europe.
“The current price stagnation reflects an uneasy balance between high output levels and weakening demand prospects,” said an energy strategist. “Without stronger economic indicators or coordinated production cuts, it’s unlikely we’ll see meaningful upward movement in the near term.”
The situation has been further complicated by the renewed escalation in the US-China trade dispute, which has reintroduced volatility into global markets. Washington’s latest round of tariffs targeting Chinese goods and Beijing’s retaliatory steps — including export restrictions on rare earth minerals and higher port fees — have heightened fears of a slowdown in global trade and manufacturing activity.
Economists warn that prolonged tensions between the world’s two largest economies could depress industrial growth, dampen consumer demand, and ultimately weaken global energy consumption. The uncertainty has already led some investors to scale back risk exposure across commodity markets.
Meanwhile, traders are keeping a close eye on upcoming data on US crude inventories and global refinery throughput, which are expected to offer fresh clues on consumption trends. Early forecasts suggest that stockpiles have risen for a third consecutive week, reinforcing concerns that the market could remain oversupplied well into the fourth quarter.
Despite the midweek stabilization, market sentiment remains fragile. Analysts caution that any sustained price recovery will depend heavily on the pace of demand revival in Asia and the ability of major producers to adjust output in response to weakening consumption patterns.
As of early afternoon in London, Brent crude was steady at about $62 a barrel, while West Texas Intermediate (WTI) hovered near $58, reflecting subdued trading activity and lingering investor caution.
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Oil Prices Hold Firm as US-China Trade Clash Fuels Market Uncertainty
Oil prices held steady on Wednesday following a sharp decline that pushed them to their lowest level in five months, as renewed fears of
