All articles tagged with #oversupply
Originally Published 6 days ago — by U.S. Energy Information Administration (EIA) (.gov)
In 2025, crude oil prices declined due to oversupply in the global market, with prices dropping from $79 to $63 per barrel, influenced by economic slowdown, increased production by OPEC+, and inventory builds, especially in China, which moderated price declines.
Originally Published 10 days ago — by CNBC
Oil prices slightly declined at the start of 2026 after experiencing their largest annual loss since 2020, amid oversupply concerns and geopolitical tensions including the Ukraine war and Venezuela sanctions. Brent crude closed at $60.75 and WTI at $57.32, with analysts expecting a range-bound market around $60-65 per barrel in 2026.
Originally Published 1 year ago — by FX Empire
The natural gas market is facing oversupply due to high production levels, mild weather reducing heating demand, and elevated gas inventories. Prices have been in an oversold state, with futures declining significantly. The market outlook remains bearish due to persistent mild weather, robust production, and high inventory levels. It is expected that natural gas prices will continue to be low, with potential brief and restrained price increases. Traders should monitor production trends and inventory levels, as the market indicates that the peak demand season for winter is over.
Originally Published 1 year ago — by Reuters
Maersk warned that container shipping overcapacity would impact profits more than expected this year and downplayed the boost from the jump in freight rates due to Red Sea disruptions, leading to a 17% plunge in its shares. The company suspended its share buyback program and expects the oversupply of vessels to affect earnings in the coming years, with a projected underlying EBITDA of $1-6 billion for 2024, below analyst expectations. CEO Vincent Clerc cautioned against expecting a significant profit boost from the Red Sea crisis and emphasized the long-term impact of overcapacity on shipping prices.
Originally Published 2 years ago — by FX Empire
Natural gas prices fell during the trading week as concerns about oversupply and the fading impact of winter storms in the United States weighed on the market. Technical analysis suggests a potential drop towards the $2 level, with traders pricing in the upcoming March contract and its typical decrease in demand. The market is likely to carve out a range between $2 and $3.33 for the year, with the $2 level being a major floor.
Originally Published 2 years ago — by Reuters
Oil investors are entering 2024 with concerns about oversupply, slowing economic growth, and simmering tensions in the Middle East that could lead to price volatility. Despite demand reaching record highs, prices have been capped by a strong dollar and robust non-OPEC output. Analysts forecast Brent crude to average $84.43 a barrel in 2024, with supply expected to grow between 1.2 million and 1.9 million bpd, driven by non-OPEC producers. Key factors to watch include OPEC+ compliance with voluntary output cuts, the influence of Russia, Iran, and Venezuela on global markets, the impact of new refineries on refined product tightness, and the potential for a crude quality mismatch between light sweet and medium sour grades.
Originally Published 2 years ago — by OilPrice.com
Crude oil prices continue to decline due to concerns over oversupply and weak demand, with traders awaiting the outcome of the Fed meeting and the Energy Information Administration's weekly oil inventory report. Russian oil exports have reached their highest level since July, casting doubt on the implementation of additional OPEC+ output cuts in January. Rising U.S. oil production has added to oversupply concerns, pushing the futures market into a contango until mid-2024. Despite OPEC+ efforts, oil prices have fallen by about 25% since September, with WTI trading below $70 per barrel and Brent crude slipping below $75 per barrel.
Originally Published 2 years ago — by CNBC
Plunging pork prices in China, driven by a pork glut and weak domestic consumption, are pushing the country closer to deflation. Retail pork prices in China dropped 31.8% in November compared to a year ago, contributing to a 0.5% year-on-year decline in the consumer price index. Falling pork prices, along with other factors such as falling real estate prices and aggressive discounting by e-commerce retailers, are concerning as they may lead to consumers postponing investments or purchases. China's oversupply of pork is also impacting the global meat market, creating a deflationary impulse. Additionally, changing consumer preferences towards healthier alternatives and a decline in demand for meat are further contributing to the deflationary risks in China.
Originally Published 2 years ago — by Yahoo Finance
Oil prices continue to decline, marking the longest weekly losing streak in five years, as concerns over oversupply outweigh the latest production cuts announced by the OPEC+ alliance. Despite positive factors such as plans to refill the Strategic Petroleum Reserve in the US and a strong jobs report, the spreads between monthly contracts indicate weakness in supply and demand. The market remains vulnerable due to surging output in the US and other major producers, slower Chinese demand growth, and the risk of a US recession. The upcoming assessments by the International Energy Agency, OPEC, and the US Energy Department, as well as the Federal Reserve's rate decision, will be closely monitored.
Originally Published 2 years ago — by OilPrice.com
Crude oil prices are on track for their seventh consecutive weekly loss due to concerns over oversupply and weaker demand, despite the recent OPEC+ production cut agreement. The Energy Information Administration reported record-high U.S. crude production, adding to the oversupply worries. China's slowing import demand and doubts about its economic recovery also contributed to the bearish sentiment. Short sellers closing their positions and OPEC+'s efforts to stabilize the market were insufficient to reverse the downward trend. The bleak oil demand outlook, particularly in China, and lower-than-expected OPEC+ production cuts further weighed on prices.
Originally Published 2 years ago — by OilPrice.com
Growing U.S. oil exports, which have reached record levels, are putting lasting pressure on oil prices and posing challenges for OPEC. Cargo-tracking data suggests that U.S. crude oil exports hit nearly 6 million barrels per day (bpd) last week, while the Energy Information Administration reported exports at 4.3 million bpd. The increase in exports is driven by record-breaking production, leading to concerns about potential oversupply. Despite expectations of higher oil prices next year, there are now talks of oversupply well into 2024. The focus on demand rather than supply is reducing the impact of OPEC+ cuts and Middle East tensions on oil prices.
Originally Published 2 years ago — by Willamette Week
Oregon's cannabis industry continues to face challenges due to oversupply, resulting in lower prices and financial struggles for producers, processors, and retailers. The state's economists reported a 15% increase in the October outdoor harvest compared to the previous year, exacerbating the existing supply glut. As a result, many businesses are unable to pay taxes and debts, leading to an increase in tax delinquencies and falling tax collections. This poses a threat to Measure 110, which relies on cannabis taxes to fund addiction treatment services. While some suggest reducing the number of licensees to stabilize prices, current conditions reflect intentional policy decisions and the federal government's stance on marijuana.
Originally Published 2 years ago — by CNBC
The Hamptons is experiencing a glut of summer rentals, with twice the number of homes available compared to pre-pandemic levels. This oversupply has led to price cuts of 10-20%, with further drops expected as homeowners race to fill their rentals before Memorial Day. The surge in supply is due to many new homeowners trying to rent their homes after buying during the sales boom of 2020 and 2021. Falling demand from Wall Street and tech workers is also contributing to the market's struggles, although high-end oceanfront rentals remain in demand.
Originally Published 2 years ago — by CNN
Kroger will pay $68 million to settle a lawsuit in West Virginia alleging the company contributed to the oversupply of opioids in the state and failed to maintain effective controls. The settlement resolves the last remaining defendant in a state lawsuit involving Walgreens, Walmart, CVS and Rite Aid. The financial impact to Kroger will be minimal. The lawsuits allege the pharmacies’ contribution to the oversupply of prescription opioids in the state have caused “significant losses through their past and ongoing medical treatment costs.”
Originally Published 2 years ago — by The Associated Press
The legal marijuana industry in the US is facing economic struggles due to oversupply and high taxes, with some licensed growers funneling product to the black market just to stay afloat. While some are hoping for President Joe Biden’s administration to clear the way for marijuana trade among states that have legalized the drug, others are concerned that regulations in some states may hamper their ability to compete in an interstate marketplace. The oversupply has led to plummeting prices, with some California growers pushing legal product into illicit sales. Despite predictions of an industry-wide collapse, some growers have found a happy medium and are surviving and profiting through brand loyalty.