Brent crude falls below $60 as global surplus pressures prices
(Bloomberg) – Brent oil dropped below $60 a barrel for the first time since May, breaching a key level as supply outpaces demand and is on course to continue do so at a record clip next year.
Brent fell as much as 1% to trade at $59.96 deepening a loss for the year, while West Texas Intermediate hovered around $56 a barrel.
The prospect of a large oil surplus, driven by a wave of new supply from OPEC+ and countries in the Americas, as well as subdued demand growth, drove prices down gradually in 2025.
Fresh hope for a deal to end Russia’s war in Ukraine also chipped away at a longstanding geopolitical premium on crude oil. Still, markets are weighing the possible effects of a US pressure campaign against Venezuela.
