Oil prices slipped in early Asian trade due to supply concerns and U.S.-China trade tensions. Brent crude futures dropped 0.29% to $61.11, while WTI fell 0.35% to $57.34. The International Energy Agency warned of a supply surplus, OPEC+ is unwinding output cuts, and the U.S.-China trade war is fueling selling pressure.

Analyst Toshitaka Tazawa cited concerns about oversupply and economic slowdown from trade tensions as reasons for selling pressure. U.S. and China imposing extra port fees on cargo shipments could slow freight flows and reduce global growth. U.S. oil output hit a record high last week, adding to supply concerns.

U.S. pressure on countries buying Russian crude may lower prices, but uncertainty remains over potential slowdown in buying. The ongoing trade tensions between the U.S. and China could sharply reduce oil demand. Oil market volatility is expected amid geopolitical risks and increasing supply.

Read more at Yahoo Finance: Supply and Demand Fears Continue to Drag Oil Prices Lower