WTI steadies near $58 as supply glut fears, US-China trade tensions weigh

• WTI US Oil price steadies around $58.25, as fears of a global supply surplus limit any recovery.
• Trade tensions between the United States and China intensify, raising concerns about global Oil demand.
• Investors await the American Petroleum Institute's weekly Crude Oil stock report due later on Wednesday.

West Texas Intermediate (WTI) US Oil trades around $58.30 on Wednesday, up 0.30% at the time of writing, after regaining some lost ground. However, the commodity remains on the defensive, pressured by escalating trade tensions between the United States (US) and China and by warnings from the International Energy Agency (IEA) about a potential massive supply glut in 2026.

The IEA estimates that global Oil supply growth could outpace demand by nearly 4 million barrels per day next year, as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) ramp up output while consumption remains sluggish. This outlook weighs on market sentiment and limits the WTI price's ability to recover.

On the trade front, relations between Washington and Beijing have deteriorated again. The world's two largest Oil consumers have decided to impose additional port fees on cargo shipments between them, a measure likely to increase shipping costs and disrupt freight flows. The US began collecting these fees on October 14, and China responded with similar levies on American vessels. This escalation heightens fears of weakening global energy demand.

Meanwhile, traders are awaiting the American Petroleum Institute (API) weekly Crude Oil inventory report, due later on Wednesday. A sharp build in inventories would reinforce concerns about oversupply, while a decline could provide temporary relief to Oil prices.

In the background, geopolitical risks remain a mild supporting factor. US President Donald Trump's comments on Sunday about the possible delivery of Tomahawk cruise missiles to Ukraine have reignited concerns about additional sanctions on Russian energy exports. Such risks could, at least in the short term, help contain the downside pressure on WTI US Oil prices.