Brent crude oil futures hovered around $61.1 per barrel on Monday, near the lowest level in almost two months amid persistent concerns about oversupply, while investors monitor developments surrounding a new round of Ukraine peace negotiations.

President Volodymyr Zelensky met with US President Donald Trump's top envoys on Sunday for two days of talks aimed at ending the war with Russia. Despite the diplomatic efforts, fighting continues, with Ukrainian drone strikes targeting oil depots and refineries across several Russian regions, keeping Russian supply at risk.

Supporting prices, the US ramped up pressure on Venezuela, seizing a tanker and imposing new sanctions on ships and associates of President Nicolás Maduro, while also expanding its military presence in the region. Separately, Iran said it had seized a foreign tanker in the Gulf of Oman over alleged fuel smuggling.

WTI crude oil futures slid to around $56.6 per barrel on Monday, the lowest since early 2021, as persistent oversupply pressures outweighed geopolitical risks. Global supply remains ample, with elevated inventories and rising output from the US, Brazil, and Guyana reinforcing expectations that production growth will continue to outpace demand into 2026, keeping physical markets well supplied.

On the demand side, weaker signals from China, including softer industrial activity and a growing reliance on renewables for power generation, have reinforced concerns that demand growth is insufficient to absorb excess barrels.

Developments around Ukraine peace negotiations also weighed on prices, as any credible path toward a ceasefire would erode the risk premium tied to potential Russian supply disruptions. Meanwhile, US actions against Venezuela and tensions involving Iran in the Gulf of Oman offered only limited support, as these risks were seen as inadequate to tighten global supply.

Source: Trading Economi