Crude Oil Tumbles On Oversupply Concerns

(RTTNews) - After ending last Friday's choppy trading day modestly lower, the price of crude oil has shown a more substantial move to the downside during trading on Monday.

Crude for January delivery has tumbled $0.62 or 1.1 percent to $56.82 a barrel after slipping $0.16 or 0.3 percent to $57.44 a barrel in the previous session.

The steep drop by the price of crude oil came as lingering oversupply concerns offset worries about potential supply disruptions.

Traders also kept an eye on developments in the Russia-Ukraine, with the potential for a peace deal weighing on oil prices.

Ukrainian President Volodymyr Zelenskyy has offered to drop Ukraine's aspirations to join the NATO military alliance following talks with the United States.

Meanwhile, traders seemed to shrug off potential supply disruptions due to rising tensons between the United States and Venezuela.

Last week, the U.S. seized an oil tanker off the coast of the South American country and also announced a series of new sanctions targeting the family of Venezuelan President Nicolas Maduro.

"Nicolas Maduro and his criminal associates in Venezuela are flooding the United States with drugs that are poisoning the American people," said Secretary of the Treasury Scott Bessent.

Venezuela's foreign ministry said it "strongly denounces and condemns what constitutes blatant theft and an act of international piracy."