Oil prices steady after sharp monthly decline
Oil prices stabilized following the biggest drop recorded this month, as traders await key industry reports expected this week to gauge the scale of a potential oversupply.
Brent crude remained above $62 a barrel after falling 2% on Monday, News.Az reports, citing Bloomberg.
The U.S. Energy Information Administration will release its Short-Term Energy Outlook on Tuesday, while additional reports from the International Energy Agency (IEA) and OPEC are due later this week.
The IEA has forecast a record surplus for next year, with the volume of oil moving across global shipping lanes continuing to rise. Prices for refined fuels have also weakened in recent days, removing a recent source of support for crude. Still, Brent remains within the tight $4-per-barrel range it has traded in since early November.
“Eventually, the current huge blob of oil at sea will move onshore where the sensation of rising crude oil stocks will be more tangible,” said Bjarne Schieldrop, chief commodities analyst at SEB AB. “The only reason why Brent crude hasn’t fallen faster and deeper is because of the US sanctions related to Rosneft and Lukoil.”
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