Oil Prices Wobble Amid Global Supply Surge and Geopolitical Unrest

Oil prices have fallen below $60 a barrel amidst increased global supply and geopolitical tensions involving Ukraine and Venezuela. Despite President Trump's actions affecting Venezuelan oil, the actual supply issue is more related to a surge in 'oil on water' and Russian sanctions affecting sideways flows.

Oil prices have nosedived below $60 a barrel as global supply increases and geopolitical tensions continue to make waves. U.S. actions to influence Venezuelan oil and potential peace developments in Ukraine add layers to the situation, but the primary catalyst is a spike in global oil supplies, both on land and at sea.

Brent crude futures faced a sharp decline this week, dropping to their lowest since early 2021. Market movements are further stirred by U.S. President Donald Trump's blockade of Venezuelan oil tankers, while peace prospects in Ukraine impact perceptions. However, experts suggest that a surge in oil stored at sea, particularly at 1.3 billion barrels, is a growing threat to prices.

Russian oil, despite sanctions, continues to find its way mainly to Asian markets, suggesting that heightened supplies may persist. The looming oversupply is predicted to exert downward pressure on oil prices, with forecasts indicating an excess supply scenario by 2026. The geopolitical narrative shifts, yet the supply narrative remains dominant in oil price outcomes.