Brent crude oil prices fell to below $60 a barrel on Tuesday, the lowest since May, amid investor optimism over progressing peace talks between Russia and Ukraine, and a wave of oversupply hitting global oil markets.

There’s a record 1.4 billion barrels of crude currently on the world’s oceans, pushing down benchmark prices and sending gasoline under $3 a gallon at the pump in the US.

The world has more oil than it needs, but a drop in crude prices this week to the lowest level in nearly five years may help slow production and boost demand.

Despite positive reports from OPEC and the IEA, as well as supportive US inventory draws and new geopolitical risks in the Caspian Sea, oil prices surprisingly fell nearly 2% as market sentiment took precedence over fundamental data.

"The administration is pushing for $40 per barrel crude oil, and with tariffs on foreign tubular goods, [input] prices are up, and drilling is going to disappear," one survey respondent said. "The oil industry is once again going to lose valuable employees."

The Trump White House confirms efforts to restore the nation's emergency oil reserve following its depletion during the previous Biden administration.

Russian crude prices are at their lowest since the war in Ukraine began, as sanctions deepen the discounts the nation’s oil industry needs to offer and benchmark futures tumble.

Goldman Sachs sees gold prices climbing 14% to $4,900 per ounce by December 2026 in its base case, it said in a note on Thursday, while citing upside risks to this view due to a potential broadening of diversification to private investors.

Oil prices stabilized after a strong rally as traders balanced robust U.S. economic data against rising supply risks tied to Venezuela and the war in Ukraine.