Oil extended declines as investors weighed signs of a swelling surplus ahead of trade talks between the US and China later this week.

Brent dropped below $61 a barrel after falling 0.5% on Monday, while West Texas Intermediate was near $57. The amount of crude on tankers at sea has risen to a record high as producers keep adding barrels, according to data from Vortexa. The build-up of supply comes as demand growth slows.

The International Energy Agency is projecting a record oil surplus next year as the OPEC+ alliance and producers from outside of the group ramp up output. Futures are heading for a third monthly loss, and time spreads for both global benchmarks are starting to signal ample supply.

“We’ve got supply growth running three times faster than demand growth,” Bob McNally, foun

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