WASHINGTON (dpa-AFX) - Oil extended declines for a fifth day on Tuesday amid oversupply concerns, exacerbated by a preliminary agreement to restart an Iraqi-Kurdish oil pipeline.
The downside, however, remained capped as traders monitor the European Union's consideration of stricter sanctions on Russian oil exports, as well as escalating geopolitical tensions in the Middle East.
France and ten other countries have formally recognized Palestine at a UN summit in New York amid Israel's ongoing genocide in Gaza.
Benchmark Brent crude futures slipped 0.3 percent to $66.40 a barrel in European trade while WTI crude futures were down 0.1 percent at $62.21.
Fears of oversupply returned to the fore after Iraq's federal and Kurdish regional governments announced a preliminary agreement with oil firms to resume about 230,000 barrels per day crude exports via Turkey. The exports have been suspended since March 2023.
The demand outlook is also still uncertain due to EV adoption and economic woes fueled by U.S. tariffs.
In its latest monthly report, the International Energy Agency said that global oil supply is likely to exceed global oil demand in 2025.
Trading later in the day may be influenced by the release of the American Petroleum Institute's (API) weekly crude oil stock report.
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