Brent crude prices are facing renewed downward pressure as major investment banks accelerate their bearish revisions for the benchmark.
The sell-off is driven by a combination of softening global demand and a notable increase in crude exports from key producing nations, which is rapidly dissipating the energy crisis premium that had previously supported prices.
This shift marks a continuation of the decline seen earlier in the week, when Brent crude fell to US$70.
The market repricing follows reports of a developing agreement in the Middle East, which has significantly reduced the perceived risk of supply disruptions.
With the geopolitical overhang lifting, traders are focusing on the fundamental imbalance between supply and demand.
The influx of additional crude into the market is exacerbating the pressure on prices, as the buffer provided by export growth fails to offset the broader weakness in consumption.
This shift marks a continuation of the decline seen earlier in the week, when Brent crude fell to US$70.84 per barrel.