(Investing)– Oil prices slipped slightly lower Monday, adding to the previous week’s sharp losses as concerns over a global supply glut and weak demand outlook continued to dominate market sentiment.
At 06:05 ET (11:05 GMT), Brent Oil Futures expiring in February fell 0.2% to $61.02 per barrel and West Texas Intermediate (WTI) crude futures dropped 0.2% to $57.15 per barrel.
Last week saw a slide of more than 4% for both benchmarks, driven largely by fears that global oil supply is outstripping consumption growth.
Analysts have warned that global oil markets are heading into 2026 with a surplus, as supply additions from OPEC+ and non-OPEC producers coincide with subdued demand growth, particularly from China and Europe.
Those concerns have left oil prices struggling to find sustained support despite bouts of geopolitical risk.
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Ukraine talks weigh; China data in focus
Oil prices have also been weighed down by expectations that diplomatic efforts to end the war in Ukraine could eventually bring more Russian barrels back to global markets.
Recent talks involving U.S. and Russian officials have fuelled speculation that a peace deal, if reached, could lead to a gradual easing of sanctions, increasing supply, and adding further pressure on prices.
Data on Monday showed that Chinese industrial production missed estimates in November, while retail sales also disappointed, underscoring uneven momentum in the world’s second-largest economy.
China — the largest crude importer — continues to face subdued growth and persistent weakness in its property sector, reducing demand for industrial commodities.
Geopolitical risks provide support
Oil has found little lasting support from continued strikes on Russian energy infrastructure, which have raised concerns about potential supply disruptions, as the peace talks have dominated sentiment.
Renewed tensions between the U.S. and Venezuela provided some near-term support to prices. Washington has recently stepped up pressure on Caracas, raising concerns that tougher enforcement actions could restrict Venezuelan crude flows.
Venezuela holds some of the world’s largest oil reserves, and any disruption to its exports could tighten supplies at the margin.
Ayushman Ojha contributed to this article
