Crude Oil Drops to Early-2021 Low

2025-12-15 19:14 By Felipe Alarcon 1 min. read

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.



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