on commodities

The price of West Texas Intermediate (WTI) crude has fallen to a recent close of about US$60 per barrel from its high of US$120 in June of 2022. Closer to home, Western Canadian Select (WCS) has dropped during that time period to currently sit at US$48 from a high of just over US$100. What is causing this trend and what is the outlook for this global commodity?

Supply/demand

According to the International Energy Agency ( IEA ), the global oil market is set for strong supply growth and weak demand growth in the near- to mid-term, meaning a risk of oversupply. The IEA sees a potential surplus of 2.35 million barrels per day (mbpd) in 2025 and 4 mbpd in 2026. Global oil supply is projected to be around 106.1 mbpd for this year, an increase of about 3 mbpd over 2024, with a

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