Global oil prices tumbled to their weakest levels in more than two months on Thursday, dragged lower by a downturn in equity markets and persistent concerns about an oversupplied crude market, despite escalating geopolitical tensions.
U.S. West Texas Intermediate (WTI) crude fell 1.5%, settling below $58 a barrel, its lowest close since October. International benchmark Brent crude ended the session near $61 a barrel.
Latest Oil Prices:
WTI Crude $59.53 -0.14 -0.23%
Brent Crude $63.16 -0.10 -0.16%
Murban Crude $64.94 -0.14 -0.22%
Louisiana Light $59.75 -2.13 -3.44%
Bonny Light $78.62 -2.30 -2.84%
Opec Basket $61.87 -1.99 -3.12%
Mars US $70.36 -0.96 -1.35%
Gasoline $1.827 -0.001 -0.03%
Natural Gas $5.079 +0.016 +0.32%
The selloff in energy markets mirrored broader losses across global stock indices, where disappointing corporate earnings overshadowed the geopolitical developments that had recently provided upward pressure on crude prices.
Adding to market jitters, the United States intercepted and seized a sanctioned Venezuelan oil tanker, a move Caracas denounced as an act of “piracy.”
Venezuela, an OPEC member with the world’s largest proven oil reserves, exported roughly 586,000 barrels per day last month, most of which was shipped to China.
Separately, Ukraine broadened its campaign against Russia’s energy assets, targeting Lukoil’s Filanovsky field in the Caspian Sea, according to a person familiar with the operation.
The attack comes amid reports of U.S. pressure on Kyiv to accept a peace deal seen as largely aligned with Kremlin terms, an outcome that could eventually enable more Russian barrels to return to the market.
Rebecca Babin, senior energy trader at CIBC Private Wealth Group, said the combination of weak equity performance and evolving tensions in Eastern Europe has left investor sentiment “fragile,” with traders cautiously covering short positions amid the Venezuelan standoff.
The geopolitical turmoil coincides with mounting expectations of a supply glut next year. Rising output from OPEC+, as well as from producers in North and South America, is projected to outpace global demand growth.
The International Energy Agency (IEA) softened some of the more bearish forecasts on Thursday by trimming its estimate for a record supply surplus, its first downward revision since May.
Analysts at Citigroup, including Eric Lee, warned that global inventories are still set to rise more sharply in 2026 than in 2025. However, they noted that robust Chinese buying and persistent geopolitical risks could limit the extent of oversupply outside China.
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