Brent Below $66 as Oversupply Pressures Mount and Demand Wobbles

Brent crude has slipped below $66 per barrel, facing renewed pressure from expectations of rising supply and signs of weakening demand across key markets.

What’s Weighing on Prices:

Oversupply concerns are growing louder. The International Energy Agency (IEA) forecasts that oil output from OPEC+ and non-OPEC producers including the U.S., Canada, Brazil, and Guyana will rise strongly in 2025 and 2026, potentially outpacing demand.

Demand from the U.S. has softened, while global economic indicators hint at slowing growth—adding to the pressure on prices.

Though geopolitical risks (in places like the Middle East) remain on traders’ radars, they have so far failed to offset concerns about surplus supply and muted demand.

What to Watch:

Whether OPEC+ continues to moderate production increases in response to soft demand.

Impact of inventory builds in the U.S. and elsewhere.

Further deterioration (or recovery) in demand in Asia—especially from China and India.

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