![\"A](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/10\/1760461149_161_960x0.jpg\")
<\/p>\n<\/p>\n
A floating production storage and offloading or “FPSO” vessel around 250km off the coast of Angola in the Atlantic Ocean. (Photo: Rodger Bosch)<\/p>\n
AFP via Getty Images<\/p>\n
Oil prices slumped to their lowest in five months on Tuesday on market fears of oversupply in the run up to end of the year and first quarter of 2026. <\/p>\n
At 11:02am EDT on Tuesday, global proxy benchmark Brent\u2019s front-month futures contract was down 2.08% or $1.32 barely holding the price floor at $62 per barrel, and having dropped by as much 3% in European trading. <\/p>\n
Concurrently, the U.S. West Texas Intermediate front-month futures contract was trading at $58.26 a barrel, down 2.01% or $1.95%. <\/p>\n
The latest price slump followed a report by the International Energy Agency pointing to a \u201clarge surplus\u201d in global supplies. It also came after Friday\u2019s selloff on news of a ceasefire in Gaza between Israel and Hamas, brokered by U.S. President Donald Trump. The development lowered the geopolitical risk in the crude market. <\/p>\n
However, the performance of Brent has not offered any convincing signs of encouragement<\/a> for those betting on a price upside for much of the trading year. Following Tuesday\u2019s intraday slump, the benchmark is 10% lower compared to three months ago. <\/p>\n It is also down 17% year-till-date, and 17.5% on an annualized basis having not managed to hold a $70 price floor for any convincing length of time so far into 2025. <\/p>\n Wider Market Dynamic<\/p>\n This isn\u2019t surprising given the wider market dynamic. In a bid for market share, OPEC+, a select group of Russia-led oil producers, and the Organization of the Petroleum Exporting Countries spearheaded by Saudi Arabia, continue to add barrels to the global supply pool. <\/p>\n At its latest meeting held earlier this month, the group brought back another 137,000 barrels per day of production<\/a>. But regardless of what OPEC+ does or doesn\u2019t, the market is likely heading for a year-end to early 2026 oversupply scenario. <\/p>\n ForbesOPEC\u2019s 2014 Bid To Tame U.S. Shale Failed. Will 2025 Be Different?By Gaurav Sharma<\/a>ForbesVenture Capital Inflows Will Keep Green Investments Buoyant To 2030By Gaurav Sharma<\/a>ForbesTrump\u2019s Top Envoys Tell Europe U.S. Will Double Gas Exports In 5 YearsBy Gaurav Sharma<\/a><\/p>\n That\u2019s because its production is currently accompanying record levels of non-OPEC, especially U.S., production. According to the U.S. Energy Information Administration, the nation\u2019s crude production, which hit an all-time high of 13.47 million bpd<\/a> in April, is still above 13 million bpd.<\/p>\n IEA Report Sends Further Bearish Signals<\/p>\n