Oil Markets on edge!
Oil prices fell again after posting their biggest weekly decline since early October. The market is now assessing the chances of a Ukraine-Russia peace deal, which could potentially unlock additional oil supply to the already oversupplied global market. Brent fell towards $62 per barrel, while WTI moved below $58 after US-Ukraine talks over the weekend suggested the deal deadline could be pushed back to next week.
The ongoing oil downturn this year has pushed futures contracts towards their fourth consecutive monthly decline, the longest losing streak since 2023. Sentiment has been further weighed down by rising global production, including from OPEC+, and IEA projections predicting a record surplus in 2026. The market is now focused on whether a peace deal actually materializes and whether sanctions on Russia will be eased.
Analysts believe that if sanctions are lifted, the global oversupply could worsen. Robert Rennie of Westpac said Brent is likely to struggle to break $65 and could potentially go lower next year, with the near-term market set to move according to developments from Europe, Ukraine, and the US. At the start of the Asian session, Brent fell 0.5% to $62.23 per barrel, and WTI weakened 0.6% to $57.73 per barrel. (Asd)
Source: Newsmaker.id
