Key Moments
- Brent February futures traded at $62.09 a barrel and U.S. WTI at $58.22 as of 0918 GMT, with only modest gains.
- Prices had climbed more than 2% in the previous session after Saudi airstrikes in Yemen and fresh tensions between Moscow and Kyiv.
- Analyst Ed Meir of Marex said he expects prices to trend lower in the first quarter of 2026 due to a “growing oil glut”.
Spotlight on Crude Benchmarks
Oil prices were broadly steady on Tuesday as market participants reassessed fading optimism over a Russia-Ukraine peace agreement and monitored escalating geopolitical risks in the Middle East linked to Yemen.
Brent crude futures for February delivery, which are set to expire on Tuesday, were up 15 cents at $62.09 a barrel as of 0918 GMT. The more actively traded March Brent contract rose 12 cents to $61.61.
U.S. West Texas Intermediate (WTI) crude added 14 cents, trading at $58.22.
| Contract | Delivery Month | Price | Change | Time Reference |
|---|---|---|---|---|
| Brent | February | $62.09 | +$0.15 | as of 0918 GMT |
| Brent | March | $61.61 | +$0.12 | as of 0918 GMT |
| WTI | – | $58.22 | +$0.14 | as of 0918 GMT |
Oil
Oil prices were little changed on Tuesday morning after rising more than 2% in the previous session, as investors weighed developments in Ukraine peace talks to assess the risk of potential supply disruptions.
— FINANCIAL FREEDOM/MoneySense (@raw_sunday) December 30, 2025
Impact of Russia-Ukraine Tensions
Both Brent and WTI had settled more than 2% higher in the previous session. The move came after Saudi Arabia launched airstrikes in Yemen and Moscow accused Kyiv of attempting to strike President Vladimir Putin’s residence, an allegation that further eroded hopes for a Russia-Ukraine peace deal.
Kyiv rejected the accusation from Moscow as unfounded and intended to weaken ongoing peace negotiations. Following a phone conversation with Putin, U.S. President Donald Trump said he was angered by information about the alleged attack.
“I think the markets are sensing that a deal is going to be very hard to come by,” said Marex analyst Ed Meir.
Middle East Developments and Supply Concerns
Supply anxieties were further fueled by strikes carried out by a Saudi Arabia-led coalition on what it said was foreign military assistance to southern separatists in Yemen backed by the United Arab Emirates (UAE).
The coalition has requested that UAE forces withdraw from Yemen, as frictions between the two Gulf oil producers intensify.
Traders were also following other developments in the region after Trump indicated that the United States could back another major strike on Iran if Tehran were to restart efforts to rebuild its ballistic missile or nuclear weapons programs.
Oversupply Outlook and Price Constraints
Despite renewed concerns about possible supply disruptions, analysts noted that expectations of an oversupplied global oil market continue to weigh on sentiment and may limit further price gains.
Marex’s Meir said prices would trend downwards in the first quarter of 2026 due to a “growing oil glut”.
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