16.12.202514:33:59UTC+00Oil Prices Tumble to 2021-Lows

Oil prices experienced a decline of more than 2% on Tuesday, with West Texas Intermediate (WTI) crude futures trading around $55.5 per barrel, marking the lowest point since early 2021. This continued the year-to-date losses to approximately 22%, making it the most significant annual decline since 2018. The potential conclusion of the war in Ukraine has raised expectations for lifted restrictions on Russian oil flows, thus minimizing the chances of supply disruptions in a market that is already well supplied. Throughout the year, ample supply has put downward pressure on prices, as OPEC+ members resumed previously halted output and non-OPEC countries, particularly in the Americas, continued to increase production. Additionally, economic data from China have shown persistent weakness in the world's second-largest economy, further dimming the demand outlook. Nonetheless, the negative factors were somewhat counterbalanced by the possibility of U.S. military intervention in Venezuela following the detention of a supertanker by the Trump administration last week.