WTI Holds Near Two-Month Low as Oversupply Fears Offset Geopolitical Tensions

WTI crude oil futures edged higher to $57.6 per barrel on Monday but remained close to their lowest level in nearly two months, as ongoing concerns about global oversupply continued to cap gains. Investors also closely tracked geopolitical developments, including renewed Ukraine peace efforts and rising tensions in key oil-producing regions.

Ukrainian President Volodymyr Zelensky held two days of talks with top envoys of U.S. President Donald Trump, focusing on a U.S.-backed proposal to end the war with Russia. Despite diplomatic momentum, hostilities persisted, with Ukrainian drone strikes reportedly hitting oil depots and refineries across several Russian regions.

Elsewhere, the United States intensified its military presence in Venezuela, a major oil exporter, as pressure on the country increased. Adding to regional risks, Iran said it had seized a foreign tanker in the Gulf of Oman over alleged fuel smuggling.

While geopolitical tensions provided some support to prices, persistent supply concerns continued to weigh on the broader outlook for crude.