Oil prices dip as supply rises and U.S. shale output slows, pushing markets toward contango.

Oil prices are facing pressure as markets anticipate a shift toward contango—a situation where future prices exceed spot prices—due to rising global supply and slowing U.S. shale production. Industry analysts note that declining drilling activity and capital constraints are limiting shale output growth, while increased inventory levels signal weakening near-term demand. This combination could dampen short-term price gains and reshape trading dynamics in the coming months.