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Oil Steadies Near $62 as Peace-Deal Uncertainty Meets Mounting Glut Warnings

Fresh projections of oversupply through 2026–27 are shaping price expectations more than tentative signals from the Geneva talks.

Overview

  • Brent traded near $63.20 and WTI around $58.71 early Tuesday, little changed after a 1.3% rebound on Monday that followed last week’s slide.
  • Markets are reassessing the chances of a U.S.-brokered RussiaUkraine agreement before Thursday’s deadline, with talks described as inconclusive by Kyiv and European allies.
  • Any accord that eases sanctions is seen as potentially unlocking restricted Russian supply, including roughly 48 million barrels currently stranded at sea.
  • Banks warn of a deeper, longer surplus: Deutsche Bank projects at least a 2 million bpd surplus in 2026, and JPMorgan says Brent could sink into the $30s by 2027 if oversupply persists.
  • Rate-cut expectations for the Federal Reserve’s Dec. 9–10 meeting offer limited support to demand, while OPEC+ convenes Nov. 30 to review policy after recent capacity reactivations.