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Oil Rebounds in Asia as Energy Strikes Counter Glut-Driven Selloff

Traders are recalibrating risk in light of fresh conflict news alongside an IEA forecast of a large 2026 surplus.

Overview

  • Brent rose about 0.9% to roughly $61.21 and WTI gained 0.95% to $57.28 in early Asian trade on Monday.
  • Prices had fallen more than 2% on Friday as markets weighed oversupply expectations and optimism around Ukraine peace talks.
  • The IEA projects a roughly 3.84 million barrels per day surplus in 2026, reinforcing a bearish longer-term outlook.
  • Russia and Ukraine traded weekend strikes on energy facilities, damaging Naftogaz’s Kherson heat and power plant and hitting Russia’s Syzran refinery.
  • Trump and Zelenskiy reported progress toward a 20‑point framework but flagged territorial control as a key hurdle, while the U.S. ordered a two‑month quarantine on Venezuelan oil that analysts view as having limited market impact so far.