Brent Crude Slips Lower on Weak Demand and Global Surplus Forecasts

Demand Softness

Economic data from the Eurozone continues to point towards stagnation, weighing on demand for refined products like diesel. This soft consumption picture is removing a key pillar of support for Brent prices, leaving the market vulnerable to supply-side pressure.

Logistical Friction

While prices are lower, they are being prevented from a total collapse by logistical friction. Sanctions on Russian shipping and US naval activities are creating bottlenecks that add a small premium to the price, but not enough to reverse the broader downtrend.