Oil prices have remained relatively stable as investors consider indicators of a growing surplus in the market, ahead of upcoming trade discussions between the United States and China. Brent crude traded just under $US61 a barrel, following a 0.5 per cent decrease on Monday. West Texas Intermediate crude is holding near $US57 a barrel.
Data from Vortexa indicates a significant increase in the volume of crude oil on tankers at sea, reaching a record high as producers continue to add barrels to the supply. This expansion of supply coincides with a period of slowing demand growth, contributing to concerns about a potential oversupply in the global market.
Oil is currently on track for its third consecutive monthly loss, with expectations of an expanding surplus placing downward pressure on prices. Some market forecasters have suggested that Brent crude could potentially fall into the $US50-a-barrel range in the coming year if current trends persist. Time spreads are beginning to reflect ample supply for both global benchmarks, further reinforcing these concerns.
