Brent and WTI crude prices stabilize as traders assess potential Iranian supply boost and long-term oversupply risks.
Oil prices remained near three-month lows Wednesday, with Brent crude at $79.26 and WTI at $76.29, as markets weighed a potential U.S.-Iran peace deal against demand-supply dynamics. Both benchmarks fell 5% Tuesday on expectations the Strait of Hormuz could reopen, allowing Iranian oil exports to resume.
The International Energy Agency forecast a significant supply overhang by 2027, with global output rising 8 million barrels per day versus demand growth of just 2 million bpd. Near-term, the agency expects inventories to be restocked as Iranian supply returns to markets.
Analysts warned markets may be underestimating the depth of the coming glut, though firmer demand for inventory replenishment provided some support.