Oil Prices Plunge, Markets Worried About Supply Spike
Crude oil prices weakened again on Tuesday, recording their fifth consecutive decline. Pressure stemmed from growing concerns about a global oversupply that is expected to create a surplus in the fourth quarter of this year and into 2026. Brent crude slumped toward $66 per barrel, while West Texas Intermediate (WTI) moved closer to $62 per barrel.
Market pressure was further exacerbated by news that Iraq would soon resume oil exports through the Kurdistan Region, which had been halted for two years due to a payment dispute. If confirmed, approximately 230,000 barrels per day are expected to re-enter the international market, adding to price pressure.
Furthermore, rising production from OPEC+ member countries and additional supply from producers outside the group further strengthen the oversupply projection. The International Energy Agency (IEA) even warned that supply could exceed demand by a record margin in the near future.
Geopolitically, additional pressure emerged after Canadian Prime Minister Mark Carney called on Western allies to immediately impose secondary sanctions on Russia. Meanwhile, former US President Donald Trump also urged Europe to halt energy imports from Moscow, although China, Russia's largest oil buyer, has not yet been hit with additional tariffs. (ads)
Source: Bloomberg.com
