Brent Trades at $66.56, WTI at $62.65 Amid Market Jitters

Crude oil prices held within a narrow range on Monday as geopolitical concerns surrounding Russia and the Middle East were offset by renewed fears of oversupply in the global market.

Brent crude oil, the international benchmark for Nigerian crude oil, dipped by 0.2% to trade at $66.56 per barrel by 11:00 a.m. in Nigeria, while U.S. West Texas Intermediate (WTI) for October delivery settled at $62.65 per barrel, reflecting a 0.1% decline.

The more active November WTI contract traded lower at $62.22 per barrel, down 0.3%.

Analysts noted that the oil market is facing downward pressure as global demand tapers while OPEC+ production continues to rise.

According to SEB analysts, demand is expected to slow from Q3 2025 through Q1 2026, while supply growth could push prices into the $50 range if surplus volumes are not absorbed, particularly by China.

Adding to supply-side concerns, Iraq, OPEC’s second-largest producer, disclosed that crude exports for September are projected to average 3.4–3.45 million barrels per day (bpd).

The country also confirmed progress on resuming pipeline exports from its Kurdistan region through Turkey, a move that could inject additional volumes into the global market.

Geopolitical tensions also weighed on sentiment as Poland deployed allied aircraft over the weekend to secure its airspace following Russian strikes near the Ukrainian border.

The move came days after Russian jets breached Estonian airspace, further escalating strains between NATO and Moscow.

In the Middle East, the recognition of a Palestinian state by four Western nations has fueled diplomatic tensions with Israel, adding another layer of uncertainty to the oil market outlook.

Market sentiment remains cautious following last week’s decline when Brent and WTI both closed lower by more than 1%, reflecting concerns about slowing consumption and excess supply.

The balance between geopolitical risk and market fundamentals continues to dictate price movements. Analysts warn that without fresh demand triggers, the market could face deeper declines, despite ongoing security threats in Europe and the Middle East.