Oil Steadies With Supply Surplus and Russian Sanctions in Focus
Oil steadied as investors weighed the impact from an emerging surplus against US sanctions on Russia that have upended some crude flows.
Brent traded near $64 a barrel after closing fractionally lower in the previous session. The price of Russia’s flagship crude has plunged to the lowest level in more than two years, just days before US sanctions hit giant producers Rosneft PJSC and Lukoil PJSC, while major Asian buyers have paused at least some purchases.
Benchmark futures are down this year as expectations for a glut weigh on the outlook, with the International Energy Agency forecasting a record surplus in 2026. The oversupply is being driven by the return of idled output from OPEC and its allies, as well as more production from outside of the group.
“Despite the weak sentiment across financial markets, the oil market remains supported by geopolitical uncertainty and sanctions,” said Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management.
On Monday, US President Donald Trump said he isn’t ruling out sending troops into Venezuela, but that he is also willing to speak with the country’s leader, Nicolas Maduro. The US has amassed a military presence near the OPEC producer in recent weeks.
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Prices:
Brent for January settlement slipped 0.4% to $63.96 a barrel at 9:55 a.m. in London.
WTI for December delivery dropped 0.4% to $59.69 a barrel.
Source: Bloomberg.com
