Oil prices fell slightly on Tuesday. This is because of the continuation of the previous day’s 2% decline. Markets are watching the peace talks to end the Ukraine-Russia war, concerns about high oil inventories, and the upcoming US interest rate decision.
The IEA report released on December 11 could have a major impact on the market. Previous reports have said that oil production may be overproduced (surplus) in 2026. And US WTI Oil prices could fall to $ 56.80 – $ 57.50 per barrel.
The US Federal Reserve’s interest rate announcement is coming on Wednesday. Markets are pricing in an 87% chance of a 0.25% interest rate cut. The interest rate cut may provide temporary support to oil prices in the $ 60–$ 65 range. But the expectation of high oil production (oversupply) for 2026 still affects the larger market situation.
