Oil settles lower amid supply glut concerns

Oil prices closed lower today, Oct. 14, amid concerns over a global supply glut and shrinking demand due to renewed escalation of trade tensions.

Brent crude futures for December delivery fell 1.47%, or 93 cents, to $62.39 a barrel. WTI crude futures for November delivery dropped 1.33%, or 79 cents, to $58.70 a barrel.

Prices came under pressure after the International Energy Agency raised its forecast for global crude oil supply growth in 2025 and 2026 in its monthly report.

At the same time, the agency pointed to the worsening challenges facing the global economy, explaining that this will keep oil consumption low for the remainder of this year and next.

Meanwhile, Torbjorn Tornqvist, CEO of Gunvor Group, warned that the global oversupply long anticipated by oil markets is beginning to unfold, potentially driving prices down.

In new trade escalation, China today placed five US-based subsidiaries of a Korean shipbuilder on its sanctions list, after the US threatened to raise tariffs on China following its tightening of restrictions on rare earths exports.