WTI crude oil futures dropped to $57.3 per barrel on Monday, hovering near six-month lows, as concerns over a global supply glut continued to weigh on prices. The decline follows last week’s report from the IEA, which raised its projections for a market surplus in 2026 amid rising output from OPEC+ members. At the same time, cooling tensions in the Middle East reduced risk premiums, with Israel and Hamas reaffirming their commitment to a ceasefire agreement. Limiting losses, however, a major Russia gas-processing plant was forced to shut down, at least partially, following a Ukrainian drone strike over the weekend that caused a fire and damage to the facility. On the trade front, investors are closely monitoring the upcoming US–China trade talks, as the latest friction between the world’s two largest crude consumers added another layer of uncertainty to the energy market.
