US crude oil prices fell below $55 per barrel on Tuesday, the lowest level since early 2021, over expectations of a surplus and optimism around Ukraine peace talks.
OPEC+ members have ramped up production this year, spurring fears of a “super glut.” And while peace in Ukraine likely remains a ways off, some traders are pricing in lower geopolitical risk. A Rystad Energy analyst noted that an end to the conflict could bring millions of barrels of Russian oil back to the market.
Prices might have been dragged down further but for disruptions to Venezuela’s oil exports after the US seized a tanker in the Caribbean: Oil has played a central role in Washington’s pressure campaign against Caracas.