Oil prices eased on Tuesday as markets balanced fading hopes for a Russia-Ukraine peace agreement with growing concerns about a possible oversupply.
Brent crude slipped 32 cents, or 0.51%, to $62.85 a barrel by 1:30 p.m. EST (1830 GMT). U.S. West Texas Intermediate crude fell 27 cents, or 0.46%, to $59.05 a barrel.
Both major benchmarks gained more than 1% on Monday.
Traders shifted their attention to the Russia-Ukraine negotiations after Russian President Vladimir Putin met in Moscow with U.S. President Donald Trump’s special envoy Steve Witkoff and Jared Kushner.
Mixed Signals on Russian Oil
Before the meeting, Putin warned European nations that Russia was ready for a conflict if they chose to escalate tensions. He also threatened to cut off Ukraine’s access to the sea in response to drone strikes on tankers from Russia’s “shadow fleet” operating in the Black Sea.
Putin will begin a two-day visit to India on Thursday. He is expected to promote more sales of Russian oil, missile systems, and fighter jets, as Moscow aims to rebuild energy and defense ties weakened by U.S. pressure on New Delhi.
“The mixed rhetoric created volatility in oil markets,” said Phil Flynn of Price Futures Group. Flynn explained that initial confidence in Russia’s commitment to supply oil to India faded after Putin’s remarks, which suggested the peace deal may be further away than expected.
On Monday, the Caspian Pipeline Consortium restarted shipments from one mooring point at its Black Sea terminal after a major Ukrainian drone attack over the weekend.
Another Russian-flagged tanker carrying sunflower oil reported a drone strike near the Turkish coast on Tuesday.
Rystad analyst Janiv Shah said the oversupplied global outlook continues to weigh on prices. However, he noted that recent strikes on Russian infrastructure and rising U.S.–Venezuela tensions have helped offset some of that pressure.
Over the weekend, Donald Trump stated that “the airspace above and surrounding Venezuela” should be considered closed. The comments added fresh uncertainty as Venezuela remains a significant oil producer.
OPEC+ decided on Sunday to keep current oil production levels unchanged for the first quarter of 2026. The group has slowed its push to regain market share as it faces concerns about a growing supply glut.
