Oil prices retreated on Monday as Iraq brought one of its oilfields back online, restoring output that represents around 0.5% of global supply. The move eased immediate fears of supply disruption, sending Brent crude down nearly 2% to $62.49 and West Texas Intermediate lower to $58.88.
Market sentiment also softened as ongoing Ukraine negotiations signaled reduced geopolitical escalation, lowering the risk premium that had previously supported crude prices. With both supply stability improving and geopolitical pressures easing, traders shifted toward a more cautious outlook.
Analysts note that crude remains sensitive to diplomatic developments and production adjustments across major producers. While short-term risks have moderated, the market continues to weigh broader demand uncertainties and the potential impact of upcoming central bank decisions on global energy consumption.
