Oil prices fell in Asian trade on Tuesday, remaining close to five-month lows as concerns over a looming supply glut and weakening demand sapped confidence in crude.
Traders also priced out a risk premium from potential Middle East supply disruptions, as an Israel-Hamas ceasefire appeared to be holding after a brief conflict over the weekend.
Markets were also seen pricing in a lower chance of more U.S. sanctions against Russia over the Ukraine war.
Brent oil futures for December fell slightly to $61.0 a barrel, while West Texas Intermediate crude futures fell 0.1% to $57.45 a barrel by 20:29 ET (00:29 GMT). Both contracts remained close to five-month lows hit on Monday.
Oil pressured by oversupply concerns, weak demand outlook Oil prices have been on a three-week losing streak amid growing concerns over a looming supply glut in the coming months.
Tanker traffic data from analytics firm Vortexa showed over 1.2 billion barrels of crude were in transit this week, amid increased global oil production and longer shipping routes.
Increased production can be largely attributed to the Organization of Petroleum Exporting Countries and allies, which steadily ramped up output this year as it sought to unwind two years of production cuts.
Increased oil exports from the Americas– specifically the U.S. and Brazil– also buoyed global supplies, especially as U.S. President Donald Trump called for more energy production and lower oil prices.
Geopolitical factors also pressure oil Cooling concerns over the Israel-Hamas ceasefire saw traders price out more risk from oil markets this week.
A U.S.-brokered ceasefire was tested over the weekend after Hamas and Israel both launched strikes against each other, leaving nearly 40 people dead.
But Israel said that the ceasefire, and aid to the Gaza strip resumed on Monday, with no more reported hostilities between the two since then.
Elsewhere, oil was also pressured by bets that the U.S. will not impose fresh sanctions on Russia’s oil industry.
This came after reports showed Trump asking Ukrainian President Volodymyr Zelensky to cede some territory to Russia to end the war. Zelensky has in the past strongly opposed such a move.
ANZ analysts said the reports showed Trump’s shifting stance on the Russia-Ukraine war, and that there appeared a smaller chance of more U.S. restrictions against Russia, leaving Moscow’s oil shipments unaffected.
