FX.co ★ Oil Edges Down Amid Oversupply Concerns

WTI crude oil futures fell to $57.3 per barrel on Monday, nearing six-month lows amid persistent concerns of a global supply surplus impacting oil prices. This decline follows last week's report from the International Energy Agency (IEA), which increased its forecasts for a market surplus due to rising production from OPEC+ members. Meanwhile, decreasing tensions in the Middle East have reduced risk premiums, as both Israel and Hamas reiterated their commitment to a ceasefire agreement. However, losses were somewhat mitigated by a major incident in Russia, where a gas-processing plant was partially shut down after being targeted by a Ukrainian drone strike over the weekend, resulting in a fire and damage to the facility. Additionally, market participants are keenly observing the forthcoming US-China trade discussions this week, as recent tensions between these two major crude consumers introduce further uncertainty to the energy sector.