Oil prices slide on oversupply concerns

Brent crude oil futures fell toward $61 per barrel on Monday, hovering near a six-month low, as persistent concerns about a global supply glut continued to pressure prices.

The downturn followed last week’s IEA report, which projected a larger market surplus in 2026 amid rising output from OPEC+ producers.

Easing geopolitical risks also contributed to the decline, with Israel and Hamas reaffirming their ceasefire commitment, reducing the risk premium that had supported prices earlier.

However, losses were partly offset after a major Russian gas-processing plant was forced to partially shut down following a Ukrainian drone strike over the weekend that caused significant fire damage.

Markets are now turning their attention to an upcoming meeting between U.S. President Trump and Russian President Putin in Hungary, where efforts to end the war are expected to be discussed.

Meanwhile, the upcoming U.S.–China trade talks are adding another layer of uncertainty, as renewed tensions between the world’s two largest oil consumers weigh on the outlook for global energy demand.

Similarly, WTI crude oil futures dropped to around $57.10 per barrel, mirroring Brent’s decline and underscoring the broad bearish sentiment in the energy markets.