Oil Prices Fall Towards $60 As Supply Fears Mount

Core Insights - Oil prices are declining due to concerns about oversupply following OPEC's decision to pause supply increases and a stronger U.S. dollar impacting demand from foreign currency holders [1][6] - The U.S. benchmark price, WTI Crude, is trading around $60.17 per barrel, down 1.44%, while Brent Crude has slipped to $64.10 per barrel, down 1.22% [1][2] - OPEC+ has decided to halt production increases in the first quarter of 2026, citing seasonal demand trends and weaker historical demand during this period [4] Market Reactions - Speculators view OPEC's pause in output hikes as bearish, interpreting it as a recognition of potential oversupply risks [3][5] - Despite the bearish sentiment, OPEC+ continues to project a bullish outlook on market balances, with some members dismissing oversupply concerns [6]