Oil prices maintained most of their gains in early Thursday trading as investors awaited U.S.-China trade talks later in the day.
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U.S. oil prices fell below $55 a barrel on Tuesday, their lowest level since early 2021, as traders priced in an impending surplus and the possibility of a peace deal with Ukraine.
west texas intermediate The price hit a low of $54.98 per barrel, the lowest since February 3, 2021.
The US benchmark was trading 2.92% lower at $55.16 in the latest session. global benchmark brent It fell 2.77% to $58.88 per barrel.
U.S. crude oil has fallen about 23% this year, its worst performance since 2018. Brent crude oil fell about 21%, its worst year since 2020.
Meanwhile, U.S. gas prices fell below $3 a gallon, the lowest level in four years, according to the Automobile Drivers Association AAA.
Oil markets have been under pressure this year as OPEC+ countries rapidly ramp up production after years of production cuts. Investors are also pricing in the possibility of lower geopolitical risks as President Donald Trump pressures Ukraine to accept a peace deal with Russia.
The threat of supply disruption has loomed over the oil market since Russia launched a full-scale invasion of Ukraine in 2022. Kiev has launched repeated drone attacks against Russia’s oil infrastructure this year. Meanwhile, the United States and its European allies have targeted Russia’s oil industry with sanctions.
