Brent Crude Slides Below $60 as Global Surplus Pressure Intensifies

European Demand Softness

Weak manufacturing and industrial activity in the Eurozone continues to depress demand for refined products like diesel, which are crucial for the Brent pricing complex. This regional economic sluggishness amplifies the effect of the global surplus, dragging the benchmark lower.

Inventory Builds and Market Structure

Global inventories, including oil on water, are at multi-year highs, signaling an oversupplied market. The Brent futures curve is reflecting this bearish sentiment by staying in contango, where traders are willing to store oil now, betting that prices will not rise significantly in the immediate future.

Forecast for Further Decline

Energy agencies, including the EIA, project Brent prices will continue to fall, averaging around $55 per barrel in the first quarter of 2026. This forecast underscores the market's conviction that robust non-OPEC supply growth will override current OPEC+ production cuts.