Oil steadies with global surplus and Russian sanctions in focus

Oil steadied as investors weighed the impact from an emerging surplus against US sanctions on Russia that have upended some crude flows.

Brent traded near $64 a barrel after a modest loss in the previous session, while West Texas Intermediate was below $60. The price of Russia’s flagship crude has plunged to the lowest level in more than two years, just days before US sanctions hit major producers Rosneft PJSC and Lukoil PJSC.

Benchmark futures are down this year as expectations for a glut weigh on the outlook, with the International Energy Agency forecasting a record surplus in 2026. The oversupply is being driven by the return of idled output from OPEC and its allies, and more production from outside of the group.

“The market is weighing up a bearish balances outlook with the bullis