Oil prices fell on Wednesday due to concerns of a supply surplus in 2026 and U.S.-China trade tensions. Brent crude dropped 0.19% to $62.27 a barrel, while U.S. West Texas Intermediate fell 0.17% to $58.60. The International Energy Agency predicts a potential 4 million barrels per day surplus next year, leading to lower demand.

Trade tensions between the U.S. and China escalated, with additional port fees and sanctions imposed. The U.S. threatened to raise tariffs to 100%, while China expanded rare earth export controls. Analysts emphasize the importance of global inventory changes on oil prices, with U.S. demand data awaited to assess the market.

Analysts expect U.S. crude inventories to have increased by about 200,000 barrels last week, based on a Reuters poll. Weekly inventory data, including reports from the American Petroleum Institute and U.S. Energy Information Administration, will provide further insight into the oil market. Reports are delayed due to the Columbus Day holiday.

Read more at Yahoo Finance: Oil drops as investors weigh a supply surplus outlook and US-China trade tensions