Oil Falls to Lowest Since May in Choppy Trade With Glut in Focus

Group 1 - Oil prices have decreased, with US crude falling to its lowest level since May, settling below $58 a barrel, while Brent crude has also slumped to its weakest in about two months [1][3] - Diesel futures have contributed significantly to the decline, dropping approximately 1.4%, alongside a selloff in US equities which has added to bearish sentiment regarding oversupply [1][2] - A growing consensus indicates that crude supplies will exceed demand next year, pushing prices toward the lower end of the trading range established since mid-October, with bearish bets on Brent crude reaching a seven-week high [3] Group 2 - The International Energy Agency has reiterated its forecast for an unprecedented surplus in oil supply, with global inventories at a four-year high, although the surplus prediction is slightly below last month's forecast [4] - Geopolitical tensions, particularly new sanctions imposed by the US on Venezuelan oil assets, may provide some support to oil prices, as the US aims to cut off revenue streams for the Venezuelan government [4][5] - Ongoing conflicts, such as the war in Ukraine, are contributing to a psychological floor in crude prices, as Ukraine continues to target Russian oil assets despite peace negotiations [5][6]