Oil Holds Decline

2025-12-09 01:32 By Judith Sib-at 1 min. read

WTI crude oil futures traded around $59 per barrel on Tuesday after sliding 2% in the previous session, as expectations of a supply glut outweighed geopolitical risks.

Investors are now awaiting reports from the IEA and OPEC+, due later this week, for updated supply-demand guidance.

In mid-October, the IEA projected a sizeable surplus for 2026, while OPEC+ last month revised its Q3 outlook from a deficit to a surplus.

Further weighing on prices, reports on Monday indicated that Iraq has restored production at Lukoil’s West Qurna-2 oilfield, which represents 0.5% of global supply, following a temporary shutdown caused by an export-pipeline leak.

These supply developments have largely offset geopolitical risk premiums stemming from stalled Ukraine peace negotiations and growing tensions between the US and Venezuela.

Traders are also watching the US Federal Reserve, which is expected to cut rates by 25bps, a move that could boost economic activity and energy demand.



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