Brent Crude slides to $68 from $80 high as geopolitical tensions ease

 

Emkay Wealth Management Ltd, the wealth management arm of Emkay Global Financial Services, in its latest press navigator report on Brent has cited that crude oil prices, which had briefly surged past the US$ 80 mark amid heightened tensions during the Israel-Iran conflict, have since cooled significantly to around US$ 68 following a ceasefire that brought temporary relief to global markets. The conflict-driven risk premium—estimated between US$ 10-15—has largely dissipated, with no signs of supply disruptions through the strategic Hormuz Strait or within Iran.

OPEC+ has played a stabilising role by easing supply restrictions and committing to ramp up production in the coming months. Iraq, the largest oil supplier to the United States, continues to maintain steady and uninterrupted export flows.

On the demand side, the global shift toward cleaner energy is accelerating. The European Union’s aggressive decarbonisation targets aim to raise the combined share of renewable and nuclear energy to nearly 70% over the next decade, supported by investments nearing one-third of a trillion dollars—potentially curbing long-term oil demand.

Meanwhile, US crude inventories rose by 3.8 million barrels as of June 25, bringing total stockpiles to 419 million barrels. With a technical price ceiling projected between US$ 70-75 per barrel, market analysts believe prices are likely to remain range-bound unless new geopolitical shocks emerge. 

As the oil market rebalances, attention remains focused on global supply developments and the accelerating shift toward clean energy, the release said. 

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