Oil market concerns over oversupply

Oil prices have dropped significantly following the peace agreement between the United States and Iran, which allowed a large amount of supplies to return to the markets. This has led to a 43% decline in Brent crude since late April, due to weak Chinese demand and ongoing abundant supply, raising concerns about a surplus in the market in 2027. Meanwhile, stored quantities of oil are accumulating, and as demand declines, the oil markets are beginning to adjust to the more abundant supply.