Oil Falls 2% on Oversupply and Ukraine Peace Hopes
Oil prices fell more than 2% on Friday, with investors concerned about a potential global oversupply, despite hopes for a peace deal between Ukraine and Russia. Brent crude fell $1.60, or 2.57%, to $60.64 per barrel, while West Texas Intermediate (WTI) fell $1.61, or 2.76%, to $56.74. Although supply disruptions have supported oil prices in recent sessions, oil prices are on track for their biggest annual decline since 2020, with Brent and WTI down 19% and 21%, respectively, so far this year.
The projected oversupply, with global oil production exceeding demand, is a major issue weighing on oil prices. The IEA's oil market report forecasts a surplus of 3.84 million barrels per day next year. Investors are also monitoring developments in the Ukraine-Russia peace process. If a deal is reached, this could lead to the lifting of international sanctions on Russia's oil sector, which could impact global supply.
Meanwhile, the White House is focused on the Venezuelan oil blockade, although its impact on global oil prices is currently limited. The projected oversupply and geopolitical uncertainty remain the main factors influencing oil prices in the short term.
Source: Newsmaker.id