Oil Steadies in Early Asian Trade as Markets Balance Supply Concerns and Fed Expectations

Oil prices were little changed in early Asian trading on Monday, as the market weighed conflicting forces shaping the near-term outlook. Analysts at UOB’s Global Economics & Market Research team pointed to growing worries about a potential supply glut, combined with the lack of progress in Ukraine–Russia peace negotiations, as key factors limiting upside momentum.

At the same time, expectations of imminent monetary easing in the United States are providing a degree of support. Research analysts at the Commonwealth Bank of Australia noted that rising confidence in a Federal Reserve rate cut this week could stimulate economic activity and, in turn, boost global energy demand. A move by the Fed would also reinforce the broader shift toward looser financial conditions heading into 2026.

Against this backdrop, crude benchmarks were steady, with front-month WTI unchanged at $60.11/bbl and Brent holding at $63.77/bbl. Traders will be watching the Fed’s policy announcement closely for clues on demand prospects in the months ahead.