Brent crude prices retreated after briefly surpassing $100 per barrel following heightened geopolitical tensions in the Red Sea. Market volatility persists despite a tight physical market and significant supply risks.
Deteriorating global demand serves as the primary factor capping the recent oil rally. JPMorgan analysts report the market rebalanced through larger-than-expected demand losses, specifically citing demand destruction in China.
OPEC downgraded its 2026 oil demand forecast for the third consecutive month. The revision reflects economic headwinds and slowing consumption across key Asian economies.