Brent crude oil prices fell to below $60 a barrel on Tuesday, the lowest since May, amid investor optimism over progressing peace talks between Russia and Ukraine, and a wave of oversupply hitting global oil markets.

There’s a record 1.4 billion barrels of crude currently on the world’s oceans, pushing down benchmark prices and sending gasoline under $3 a gallon at the pump in the US.

"The administration is pushing for $40 per barrel crude oil, and with tariffs on foreign tubular goods, [input] prices are up, and drilling is going to disappear," one survey respondent said. "The oil industry is once again going to lose valuable employees."

Oil prices fell sharply as optimism increased for a Russia-Ukraine peace deal, sending Brent crude below $60 a barrel to its lowest level since May.

Crude oil is attempting a short-term recovery near key support, but persistent oversupply and weak structure keep rallies suspect. Any upside is viewed as temporary unless major resistance levels are reclaimed.

Christof Ruehl, Global Advisor at Crystol Energy, believes OPEC can tolerate oil prices in the mid-$50s and that any decision to cut output would be driven by politics rather than price levels.

The world has more oil than it needs, but a drop in crude prices this week to the lowest level in nearly five years may help slow production and boost demand.

Russian crude prices are at their lowest since the war in Ukraine began, as sanctions deepen the discounts the nation’s oil industry needs to offer and benchmark futures tumble.

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