DBS Group Research’s Philip Wee notes that Brent and WTI have fallen sharply, as markets anticipate abundant supply from the Gulf. US Treasury Secretary Scott Bessent expects Oil prices to fall below pre-conflict levels, while ongoing negotiations with Iran and the status of the Strait of Hormuz remain key uncertainties for energy markets.

Brent and WTI extend declines

"Crude oil prices continued to decline, falling farther below USD 100 per barrel."

"US Treasury Secretary Scott Bessent expects oil prices to be lower than pre-conflict levels."

"The oil market will be very well supplied, with almost 2,000 ships waiting to come out of the Gulf."

"Even if headline energy prices cool, the secondary damage to global logistics from the months-long closure of Hormuz has started to filter into intermediate goods."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)