Crude Oil Falls to Lowest Since 2021

2025-12-16 01:31 By Judith Sib-at 1 min. read

WTI crude oil futures fell 1% to $56.1 per barrel on Tuesday, the lowest since early 2021, amid renewed optimism over a Russia-Ukraine peace deal and persistent concerns about oversupply.

The US signaled on Monday that an agreement between Russia and Ukraine may be closer than ever, with Washington agreeing to provide security guarantees to Kyiv, although territorial issues remain unresolved.

Any deal could pave the way for the lifting of US sanctions on Russian oil, potentially flooding the market with more barrels.

The market is widely expected to be oversupplied this year and next as OPEC+ producers restored idled output, while non-OPEC producers, particularly in the Americas, also boost production.

Adding to the bearish sentiment, weak Chinese economic data out on Monday raised concerns about slowing energy demand from the world’s largest crude importer.

These factors offset worries over potential supply disruptions stemming from rising US-Venezuela tensions.



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