English
Oil prices fell at settlement on Tuesday,
reversing gains from the previous session, amid growing concerns about a potential supply glut and continued uncertainty surrounding the fate of talks aimed at ending the Russian-Ukrainian conflict.
Brent crude futures settled down 89 cents, or 1.4%, at $62.48 a barrel.
West Texas Intermediate (WTI) crude futures fell 89 cents, or 1.51%, to settle at $57.95 a barrel.
Both benchmarks had risen 1.3% on Monday as doubts grew about the possibility of a peace agreement to end the Russian-Ukrainian conflict, reducing expectations of an unrestricted flow of Russian oil supplies.
Deutsche Bank explained in a research note yesterday that it expects a surplus in the crude oil market of at least 2 million barrels per day in 2026, noting the absence of a clear path back to deficit until 2027.
Analyst Michael Hsueh said, "The projected trajectory through 2026 remains tilted to the downside."
The anticipated market downturn next year outweighs the impact of the potential failure of peace talks between Russia and Ukraine.
A peace agreement between the two sides could lead to the lifting of sanctions imposed on Moscow, allowing the return of oil supplies subject to Western sanctions to global markets.
However, oil prices are finding some support from growing expectations that the United States will cut interest rates in December, which could contribute to boosting economic growth and increasing demand for crude oil.
