Oil prices declined at settlement on Tuesday, December 16, to their lowest levels since February 2021, amid ongoing concerns over excess supply and growing expectations of a potential peace agreement between Russia and Ukraine, which has reinforced forecasts of a possible easing of sanctions imposed on Moscow.
Brent crude futures fell by $1.64, or about 2.71%, to settle at $58.92 per barrel. Meanwhile, West Texas Intermediate (WTI) crude declined to $55.27 per barrel, down $1.55, or 2.73%.
U.S. crude has fallen by around 23% since the beginning of the year, marking its worst annual performance since 2018, while Brent crude has dropped by about 21%, recording its weakest year since 2020.
The oil market has come under pressure this year as members of the OPEC+ alliance ramped up production rapidly after years of supply cuts. Investors are also factoring in the possibility of reduced geopolitical risks, as U.S. President Donald Trump has been pressing Ukraine to accept a peace agreement with Russia.
