Core Insights - Oil prices experienced a decline of 1% on Monday due to profit-taking after a significant rally the previous week [1][4] - The rally was driven by sanctions imposed by the Trump Administration on Russia's major oil producers, Rosneft and Lukoil, in response to Russia's lack of commitment to peace in Ukraine, leading to an 8% increase in oil prices last week [2][3] - Market reactions indicate a potential recovery in global demand sentiment, influenced by positive signals from U.S. and China regarding trade talks [3] Price Movements - As of 7:13 a.m. ET, WTI Crude was down 0.81% at $60.98, while Brent Crude fell 0.83% to $65.41 [1] - The market is currently facing expectations of oversupply, which is limiting price gains [4] Market Outlook - Fatih Birol from the International Energy Agency (IEA) indicated that increasing U.S. oil production will likely moderate prices in the near term, with no major market shake-up expected [5] - S&P Global's Dave Ernsberger noted a significant overhang in the oil market and projected that prices could fall below $60 per barrel after the new year [6]