Brent Drops Amid Oversupply Concerns

2025-10-20 01:17 By Judith Sib-at 1 min. read

Brent crude oil futures dropped toward $61 per barrel on Monday, hovering near six-month lows, as concerns over a global supply glut continued to weigh on prices.

The decline follows last week’s report from the IEA, which raised its projections for a market surplus in 2026 amid rising output from OPEC+ members.

Cooling tensions in the Middle East also reduced risk premiums, with Israel and Hamas reaffirming their commitment to a ceasefire agreement.

Limiting losses, however, a major Russia gas-processing plant was forced to shut down, at least partially, following a Ukrainian drone strike over the weekend that caused a fire and damage to the facility.

Investors now closely watch a meeting between US President Trump and Russian President Putin in Hungary in the coming weeks to discuss how to end the war.

All eyes are also on the upcoming US-China trade talks, as the latest friction between the world’s two largest crude consumers added another layer of uncertainty to the energy market.



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