Oil prices are under pressure as global supply continues to rise while demand remains weak. Higher production and growing hopes for peace in the Black Sea region are keeping prices low, and analysts expect this trend to continue.
Oil output is increasing as OPEC+ brings more supply back to the market, while the United States and other producers maintain high production levels. At the same time, diplomatic efforts between Russia and Ukraine have raised expectations that sanctions on Russian oil could be eased, which could add more supply to an already crowded market.
This week, U.S. crude oil fell to $55.82 per barrel, while Brent crude dropped below $60, the lowest levels since early 2021. Prices are down about 7% over the past month.
Refinery profits have also declined in recent weeks, especially for fuels such as diesel and jet fuel, as market conditions weakened.
The U.S. Energy Information Administration expects Brent oil prices to average around $55 per barrel in 2026, suggesting that oil markets may remain under pressure for some time.
Lower oil prices are a challenge for producers but offer relief for energy intensive industries and consumers.
