America News Agency

According to analysts evaluating the decline, expectations of an oversupply in the oil market overshadowed geopolitical risks. Investors are awaiting reports this week from the International Energy Agency (IEA) and OPEC+, which consists of OPEC countries and Russia.

In mid-October, the IEA projected a significant surplus for 2026, while OPEC+ revised its third-quarter outlook last month from “deficit” to “surplus.”

Another development that pushed prices further down was Iraq’s resumption of production at Lukoil’s West Qurna-2 oil field — representing 0.5 percent of global supply — after it was temporarily shut down due to a leak in the export pipeline, according to reports released Monday.

These supply developments largely offset geopolitical risk premiums stemming from the halt in Ukraine peace talks and rising tensions between the United States and Venezuela. Investors are also watching the U.S. Federal Reserve, which is expected to cut interest rates by 25 basis points — a move that could increase economic activity and energy demand.