Oil prices slipped on Tuesday as traders weighed renewed uncertainty around Russia-Ukraine peace efforts against persistent concerns about oversupply. Brent settled at $62.45, down $0.72, while WTI finished at $58.64, down $0.68. The declines came after both benchmarks gained more than 1% on Monday.
The market focused on fresh diplomatic activity as President Putin met in Moscow with U.S. envoy Steve Witkoff and Jared Kushner, a visit that briefly sparked speculation of progress toward a ceasefire. But that optimism faded as Putin issued sharp warnings to European governments and threatened to restrict Ukraine’s access to the sea following recent strikes on Russia’s shadow-fleet tankers.
Analysts noted that the mixed signals left traders skeptical that a breakthrough is close. Putin’s upcoming trip to India, where he is expected to pitch additional oil sales and defense ties, further underscored Russia’s effort to deepen energy partnerships outside the West.
Oversupply concerns also limited prices, with expectations for a sizable surplus in 2026 continuing to pressure sentiment. Those worries were offset in part by ongoing attacks on Russian oil infrastructure, including weekend strikes on the Caspian Pipeline Consortium’s Novorossiysk terminal and Ukrainian naval drone hits on tankers heading to Russian ports. A tanker incident off the Turkish coast added to the instability.
Geopolitical risk broadened after President Trump declared Venezuelan airspace closed, increasing uncertainty around the country’s exports. Meanwhile, OPEC+ left production levels unchanged through the first quarter of 2026, slowing its push to reclaim market share amid growing fears that global supply may run ahead of demand next year.
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* This report has been edited since its initial reporting. Charts were reflecting accurate data; however, due to a feature within the chart builder, the dates were not showing the right-most date. In order to clear up any confusion, we regenerated the charts for this report.