Oil prices fell on Tuesday on expectations of ample global supply amid weak demand, and as the market weighed the prospect of higher Venezuelan crude output following the U.S. capture of President Nicolas Maduro.
Brent crude futures fell 0.2%, or 14 cents, to $61.62 a barrel by 0450 GMT while U.S. West Texas Intermediate crude was at $58.13 a barrel, down 0.3% or 19 cents.
Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova, noted the oil price response to major geopolitical events, such as the U.S. military action in Venezuela and ongoing strikes on Russian energy infrastructure, had been surprisingly muted, suggesting fundamental demand-supply factors remained the key concern.
“From a supply perspective, the oil complex remains packed with barrels. According to the latest International Energy Agency (IEA) and U.S. Energy Information Administration (EIA) data, global crude supply continues to outpace consumption growth, pushing inventories higher and keeping downward pressure on prices,” she said.
Market participants polled by Reuters in December said they expected oil prices to be under pressure in 2026 due to growing supply and weak demand.
