Brent broke below $60 and sent a shock across the oil market, dropping to $59.96 after a steady grind lower through 2025. WTI followed the move and sat near $55.
Traders watched the decline build for months as supply kept rising while demand stayed weak.
The market has been flooded by fresh barrels from OPEC+ and producers across the Americas, and forecasts show that imbalance getting even worse next year. The year’s loss deepened fast, and no one seemed surprised anymore.
The shift in mood also came from renewed hope that Russia’s war in Ukraine could move toward a settlement. That hope cut into the geopolitical premium that had held crude higher for years.
At the same time, investors tried to measure the impact of U.S. pressure on Venezuela. With President Trump still pushing hard on sanctions strategy, traders kept guessing how Venezuelan flows might shift.
EU targets Russian oil operations
The European Union rolled out another sanctions package against Russian oil interests, naming traders Murtaza Lakhani and Etibar Eyyub for helping Russia bypass Western rules on crude exports.
The EU has now issued 19 sanction rounds and listed more than 2,600 individuals and entities. But Russia keeps finding new paths, still sending millions of barrels to India and China at discounted rates.
Much of that crude moves through a large “shadow fleet” of ships operating outside the normal maritime system.
The latest restrictions ban EU citizens from doing business with the listed names, limiting their shipping and insurance options.
The EU also targeted nine more people and companies tied to the shadow fleet, including figures linked to Rosneft and Lukoil. Analysts expect the bloc to add more than 40 ships this week, which would lift the total to around 600 vessels.
Moscow brushed off the move, saying the sanctions only harm Europeans. Russia’s Permanent Mission to the EU said, “We note with regret Brussels’ inability to recognise a simple truth: if the same action is repeated over and over and does not produce the desired result, it means the original strategy fundamentally does not work and is flawed.” The statement added that the measures would deepen “the growing socio-economic problems and the declining standard of living for European citizens.”
Asia-Pacific markets extend losses
Meanwhile, Asia-Pacific stocks are also crashing, following the lead of Wall Street as investor grow sicker and sicker of the AI trade.
Oracle’s stock ORCL fell by more than 5%, Broadcom plunged by over 2%, and Microsoft also dropped by 2.6%.
South Korea’s Kospi led the fall, losing 2.24% and closing at 3,999.13. The Kosdaq slid 2.42% to 916.11. It marked the first time in almost two weeks that the Kospi dropped under 4,000.
Korea Zinc plunged nearly 14% after reports that the firm agreed to sell $1.9 billion in shares to a joint venture controlled by the U.S. government and unnamed U.S. strategic investors.
Drug developer ADEL said it signed a deal with Sanofi worth up to $1.04 billion.
Hong Kong’s Hang Seng index declined 1.54% and ended at 25,235.41. Mainland China’s CSI 300 dropped 1.2% to 4,497.55, its lowest close since November 25.
Japan’s Nikkei 225 fell 1.56% to 49,383.29, and the Topix slipped 1.78% to 3,370.5. Japan’s flash composite PMI eased to 51.5 from 52 in the previous month. Australia’s S&P/ASX 200 lost 0.42% and ended at 8,598.9 after giving up earlier gains.
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