Brent oil futures expiring in March edged down 0.2 per cent to $64.97 per barrel

Oil prices edged slightly lower Monday, consolidating after strong gains at the end of last week as investors weighed concerns about a potential supply glut against heightened geopolitical risks and awaited signals from U.S. central bank policy meeting later this week.

At 13:15 GMT, Brent oil futures expiring in March edged down 0.2 per cent to $64.97 per barrel and West Texas Intermediate (WTI) crude futures slid 0.3 per cent to $60.91 per barrel.

Both benchmarks added more than 2 per cent on Friday, supported by a sharp rise in geopolitical risk premiums.

Oil markets have also been influenced by U.S. president’s recent geopolitical tensions over Greenland, which have unsettled broader financial markets.

On the supply front, some pressure on prices eased after Kazakhstan’s main crude export route returned to full loading capacity. The Caspian Pipeline Consortium said operations at its Black Sea terminal were restored after repairs were completed at a mooring point, allowing exports to resume at normal levels.

Despite the geopolitical backdrop, investors remain cautious about the longer-term outlook. Concerns persist that global oil markets could face an oversupply later this year if production growth outpaces demand, particularly as output from non-OPEC producers remains resilient.

U.S. central’s policy meeting due this week, is also in focus, with markets widely expecting the country’s policymakers to keep interest rates unchanged.

Investors will closely watch the central bank’s guidance for clues on the timing of potential rate cuts later this year, as interest rate expectations can influence oil demand through their impact on economic growth and the U.S. dollar.