WTI Oil stabilizes as oversupply concerns persist, Fed easing offers support

• WTI US Oil stabilizes around $57 amid persistent oversupply worries.
• Growing fears of a global Oil surplus and higher Chinese output weigh on prices.
• Expectations of a Federal Reserve rate cut, however, could help limit losses.

West Texas Intermediate (WTI) US Oil hovers around $57 on Tuesday at the time of writing, stable for the day. Crude Oil prices remain broadly under pressure amid ongoing concerns about a global Oil glut fueled by increased production from the Organization of the Petroleum Exporting Countries and its allies (OPEC+).

According to the International Energy Agency (IEA), global supply could exceed demand by around 4 million barrels per day by 2026, a projection that continues to weigh on market sentiment. At the same time, Commerzbank notes that Chinese refineries processed 62.7 million tons of Crude Oil in September, the highest level in two years. However, China reportedly imported about 570,000 barrels per day more than needed, reinforcing fears of stockpiling and confirming a structural surplus in the market.

Traders are also watching upcoming trade discussions between the United States and China, the world's two largest Oil consumers. Any deterioration in talks could further dampen global energy demand. Meanwhile, attention turns to the American Petroleum Institute (API) weekly Crude Oil stock report, due later in the day.

On the other hand, expectations of further monetary easing by the US Federal Reserve (Fed) may offer some support to Oil prices. Markets currently assign a 99% chance of a 25-basis-point rate cut at the October policy meeting, according to the CME FedWatch tool. A weaker US Dollar (USD) typically makes dollar-denominated commodities cheaper for foreign buyers, softening the downside pressure on the WTI US Oil price.