Oil steadied as investors weighed the impact from an emerging surplus against US sanctions on Russia that have upended some crude flows.

West Texas Intermediate traded below $60 a barrel after a modest loss in the previous session. Brent closed near $64. The price of Russia's flagship crude has plunged to the lowest level in more than two years, just days before US sanctions hit major producers Rosneft PJSC and Lukoil PJSC.

Oil futures are down this year as expectations for a global glut weigh on the outlook, with the International Energy Agency forecasting a record surplus in 2026. The oversupply is being driven by the return of idled output from OPEC and its allies, and more production from outside of the group.

Still, there are other geopolitical risks simmering that could put a floor under prices, including attacks in Sudan that have crimped exports, and Iran's seizure of an oil tanker last week near the vital Strait of Hormuz.

WTI for December delivery was 0.3% lower at $59.74 a barrel at 7:30 a.m. in Singapore.

Brent for January settlement dipped 0.3% to $64.20 a barrel on Monday.

Source: Bloomberg