Oil prices slipped on Tuesday as a deepening global market sell-off piled onto an already heavy mix of supply concerns and geopolitical pressure.
Brent crude eased 0.5pc to below $64 a barrel, while West Texas Intermediate dipped under $60, with traders bracing for what many expect to be a worldwide surplus next year. The International Energy Agency has warned that 2026 could bring a record global oversupply, as Opec and its allies pump more to defend market share.
Fresh US sanctions on Russia are adding to the downward pressure. The Kremlin’s flagship crude has tumbled to its lowest level in more than two years, just days before sanctions come into force against major producers Rosneft and Lukoil.
Saxo Bank analysts summed up the mood:
“Oil prices retreated following Monday’s rebound, pressured by a broader risk-off tone as traders evaluate the impact of a widening global surplus and US sanctions on Russia, which have pushed the country’s flagship crude to a steep $23.5 discount to Brent.”
