Oil Holds Two-Month Low As Surplus Offsets Geopolitical Tensions
Oliver ScottOil was steady near the lowest level in almost two months as fears of a glut outweighed heightened geopolitical tensions.
Oil was steady near the lowest level in almost two months as fears of a glut outweighed heightened geopolitical tensions.
Brent traded near $61 a barrel after closing at the lowest level since Oct. 20 on Friday, while West Texas Intermediate was below $58. Oil is set for an annual loss on expectations for a swelling surplus as OPEC+ and other producers pump more despite consumption growth remaining sluggish.
Still, geopolitical uncertainty has injected some risk premium into prices and kept oil from tumbling. Ukraine continues to attack Russian infrastructure, hitting a major refinery as well as an oil depot over the weekend. The US has dispatched envoys for another round of talks to try and end the war.
Elsewhere, Iran said it seized a foreign tanker in the Gulf of Oman it suspected of carrying smuggled fuel, while the US last week intercepted a vessel off Venezuela as President Donald Trump ramps up pressure on the regime of Nicolas Maduro.
Oil trading activity is expected to be thin heading into the Christmas and New Year holidays, which will likely mean choppy trading.
