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Oil Market's Glut Narrative Just Blew Up

News | 2026/07/26 22:00

Oil Market's Glut Narrative Just Blew Up

Brent crude price has surpassed $100

This week, Brent crude prices topped $100 per barrel following reports that Houthis struck two Saudi tankers in the Bab el-Mandeb Strait. Global refining margins have reached an all-time high, indicating that global fuel markets remain very tight:

Just a month ago, analysts warned of a looming glut of crude oil, but the situation changed rapidly as hostilities resumed:

This situation has led to a decrease in oil demand, which, according to IEA data, fell by nearly 5% in the second quarter:

In Europe, diesel stocks have declined, and China has also seen a drop in diesel demand:

All this indicates that global oil supplies are at risk, and economic growth forecasts may need to be revised.

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