Oil Drops for Second Straight Session With Supply Glut in Focus

Core Viewpoint - Oil prices have stabilized after a significant drop, with traders awaiting upcoming reports to evaluate the oversupply situation in the market [1] Group 1: Market Analysis - Brent crude is trading above $62 per barrel after a 2% decline on Monday [1] - The Energy Information Administration will release its Short-Term Energy Outlook, with additional reports from the International Energy Agency (IEA) and OPEC expected later this week [1] - The IEA forecasts a record surplus of oil for the next year, indicating an increase in oil volumes being transported [1] Group 2: Price Dynamics - Prices for refined fuels have decreased recently, which has contributed to the softening of crude oil prices [1] - Despite the recent fluctuations, Brent crude has remained within a tight range of $4 per barrel since the beginning of November [1] Group 3: Expert Insights - Bjarne Schieldrop, chief commodities analyst at SEB AB, noted that the current surplus of oil at sea will eventually lead to increased onshore stocks, making the oversupply more apparent [2] - He also mentioned that US sanctions on Rosneft and Lukoil have prevented Brent crude prices from declining more sharply [2]