U.S. crude oil prices tumbled to their lowest level since May on Tuesday, sending the market toward its worst annual performance in seven years amid growing concerns over a looming supply surplus and optimism over a potential peace agreement in Ukraine.

West Texas Intermediate (WTI) crude fell to $55.69 per barrel, while Brent slipped to $59.42, marking their lowest levels since May 5, according to international news sources.

WTI has declined roughly 22% this year, the steepest drop since 2018, reflecting mounting investor caution.

The downward pressure comes as OPEC+ members rapidly increased production after years of output cuts, contributing to fears of oversupply.

In addition, investors are factoring in reduced geopolitical risk amid ongoing discussions of a potential resolution to the Ukraine conflict, which could ease global energy uncertainties and further weigh on prices.

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