Brent Falls to $73 as 2 Million Barrels a Day Return and Demand Worries Deepen
Updated
Updated · Business Insider · Jun 30
Brent Falls to $73 as 2 Million Barrels a Day Return and Demand Worries Deepen
3 articles · Updated · Business Insider · Jun 30
Summary
Brent crude traded around $73 a barrel early Tuesday, roughly back to prewar levels after spiking above $126 in April on fears the Iran conflict would disrupt global supply.
About 2 million barrels a day of Gulf production has been restored in the past three weeks, tanker traffic through Hormuz is improving, and a preliminary US-Iran deal has reinforced expectations of ample supply.
Rystad now expects regional output to return to pre-conflict levels by December instead of the first quarter of 2027, with Saudi and Kuwaiti exports already showing recovery.
Goldman Sachs, Morgan Stanley and JPMorgan have all cut Brent outlooks, while weaker fuel demand in China and parts of Europe has added to the bearish turn.
Hormuz remains the key risk: Gulf storage tanks are only 50% to 60% full, leaving limited buffer if tanker flows stall and forcing producers to curb output again.