Oil prices fall on oversupply concerns

Oil drilling rigs

Oil prices dipped in early trade today, Oct. 15, extending losses from the previous session of more than 1%, after the International Energy Agency warned of an oil oversupply in 2026.

Brent crude was trading down 0.25% at $62.23 a barrel, at 08:24 am Makkah time, and West Texas Intermediate (WTI) fell 0.2% to $58.58 a barrel.

The International Energy Agency said on Oct. 14 that the global oil market could face a supply surplus of up to four million barrels per day next year, a level exceeding its previous forecast, as demand continues to slow.

The American Petroleum Institute's report on US oil inventories is expected later today, ahead of the official release of data from the US Energy Information Administration on Oct. 16. Both reports were delayed by one day due to the Columbus Day holiday.