Brent Under Pressure from Ukraine Peace and US Fuel Data
Brent oil prices are trending lower today after closing down around 1.5% to around $61 per barrel last night, pressured by market focus on progress in Russia-Ukraine peace talks and concerns about fuel demand in the US. Investors believe that if peace is achieved, some of Russia's oil supplies currently held back by sanctions could flow back into the global market, adding to future supply pressure.
Data-wise, the EIA report showed a significant increase in US gasoline and distillate stocks, indicating subdued fuel demand and putting pressure on refinery margins. At the same time, the Fed recently cut interest rates again, which theoretically supports oil demand through economic growth, but the positive effect is tempered by concerns about oversupply.
On a broader fundamental level, OPEC+ is maintaining a stable demand projection through 2026, while the IEA and EIA reports both assess that the market still has the potential to record a supply surplus in the next few years, although not as large as initially estimated. This situation has caused Brent to tend to move within a narrow range: supported by geopolitical risks (US tanker seizures, Russian infrastructure attacks), but limited by concerns about oversupply and sluggish fuel demand. (az)
Source: Newsmaker.id
