Oil prices continued their downward trend on Tuesday, with Brent crude sliding below the $90 threshold for the first time since late August. This retreat comes as market participants respond to a cooling of geopolitical tensions, specifically following comments from former President Donald Trump that suggest a preference for de-escalation rather than further military intervention against Iran. As the perceived threat of a major disruption to Middle Eastern supply lines wanes, traders are shifting their focus back toward the growing surplus in global inventories.

Beyond the shifting political narrative, analysts are increasingly concerned about a fundamental imbalance in the market. With demand softening under the weight of high costs and a simultaneous increase in production from OPEC nations like Saudi Arabia and Iraq, experts are identifying a significant global supply glut. With an estimated daily surplus of over a million barrels, the market is currently struggling to maintain the premium prices seen earlier in the season, even as persistent volatility in shipping routes and ongoing international negotiations remain factors to watch.