Oil Cools in Rangebound Trading With Focus on Russian Supplies
Oil eased after three days of gains as traders monitored India’s buying of Russian crude and Ukrainian strikes on its neighbor’s energy facilities.
Brent futures dipped, and have now been trading in a range of less than $4 since the start of November. Russian President Vladimir Putin last week promised “uninterrupted shipments” of fuel to India, which will likely be a key point for discussions as US negotiators arrive in the South Asian nation for trade talks.
The focus on Moscow’s flows comes as a potential peace deal between Ukraine and Russia also remained in focus. US President Donald Trump said he was disappointed in Ukrainian President Volodymyr Zelenskiy’s handling of a US proposal to end the war, which began with Russia’s full-scale invasion almost four years ago.
Those tensions will be weighed against concerns over a global glut, with higher supply from OPEC+ and producers outside the group — including the US, Brazil and Guyana — set to overwhelm tepid demand growth. The US’s Energy Information Administration, the International Energy Agency and the Organization of the Petroleum Exporting Countries will publish monthly market outlooks this week that may provide further insights.
“Oversupply concerns will eventually be realized, especially as Russian oil and refined product flows eventually circumvent existing sanctions,” said Vivek Dhar, an analyst with Commonwealth Bank of Australia. That will see Brent futures fall toward $60 a barrel through 2026, he said.
Prices:
Brent for February settlement fell 1% to $63.13 a barrel at 8:57 a.m. in New York.
WTI for January delivery lost 1.1% to $59.47 a barrel.
Source: Bloomberg
