Oil Sags to Near $60 as Market Suffers from Oil Glut

Oil declined on the first trading day of 2026 as expectations for a swelling supply surplus offset geopolitical risks to production in several OPEC+ nations, Grant Smith and Yongchang Chin reported for Bloomberg News.

Facing a seasonal lull in consumption, the Organization of the Petroleum Exporting Countries (OPEC) is leaning toward caution.

Brent crude futures traded near $60 a barrel after capping an 18% slump last year — the biggest loss since 2020 — while West Texas Intermediate hovered around $57.

Middle Eastern markets, including derivatives such as the regional Dubai benchmark, faltered amid heavy selling pressure during a key trading window in Asian hours, traders familiar with the matter said.

Facing a seasonal lull in consumption, the Organization of the Petroleum Exporting Countries (OPEC) is leaning toward caution.

Key OPEC+ members led by Saudi Arabia will convene online on Jan. 4 and are expected to reaffirm a decision to pause supply increases during the first quarter.

Prices slumped in 2025 as both OPEC+ and competitors ranging from the US to Guyana boosted output while demand growth slowed.

The International Energy Agency (IEA) has forecast a glut of about 3.8 million barrels a day this year. The looming excess is acting as a shock absorber against a range of potential output disruptions.