Oil prices held steady after closing at their lowest level since 2021 on Tuesday. Pressure stemmed from increasingly clear signs of oversupply in the global market, keeping market participants cautious.

West Texas Intermediate (WTI) crude oil traded near US$55 per barrel after plunging nearly 6% in the last four sessions. Meanwhile, Brent was just below US$59 per barrel. Weakness was seen across various regions, from the Middle East to the United States, as the International Energy Agency projected the largest surge in oversupply since the pandemic.

This oversupply was fueled by OPEC+'s rapid rollback of previously cut production. Meanwhile, non-OPEC producers also increased production. This situation has put oil prices on track for an annual decline, compounded by speculation about a potential peace deal in Ukraine that could ease restrictions on Russian oil exports.

Amidst this situation, four large tankers originally bound for Venezuela reportedly turned back. This move follows the seizure of a sanctioned tanker by US forces in Caribbean waters. President Donald Trump has also increased pressure on the government of Nicolas Maduro, aiming to limit Venezuela's crucial oil revenues. (az)

Source: Newsmaker.id