Oil Prices Tumble Amid Surging Supply: Geopolitical Moves Take Backseat

Oil prices have fallen below $60 a barrel as geopolitical events like Trump's actions on Ukraine and Venezuela take center stage. However, the true force shaping the market is a significant surge in global crude supplies. The increase in 'oil on water' highlights a likely supply overhang impacting future prices.

Oil prices have plunged below $60 a barrel, amid attempts by U.S. President Donald Trump to influence global politics, particularly with actions concerning Ukraine and Venezuela. While geopolitical moves make headlines, they're not the real market driver.

The essential factor in the current oil price scenario is an increase in global crude supplies. Brent crude futures plummeted nearly 3% to under $59, spurred by hopes for a Ukraine peace deal. Despite geopolitical tensions, the real determinant of prices may be the soaring volume of 'oil on water,' now at its highest since April 2020.

Significant global supply surpluses threaten to weigh heavily on oil prices for the foreseeable future. While geopolitical developments such as the Ukraine peace process and Venezuela blockade grab attention, experts agree that swelling global supply is the more pressing concern for future market conditions.

(With inputs from agencies.)