Oil Prices Fall Amid US-Iran Deadlock and EU Gas Storage Decline
Oil prices have retreated despite no breakthrough in US-Iran negotiations, while European gas storage levels fell. The Energy Information Administration's weekly report showed a significant increase in US commercial crude oil inventories of 17.42 million barrels.
The International Energy Agency expects the global oil market to be in a 1.8 million barrel per day deficit in Q3 2026, up from last month due to renewed disruptions in the Middle East. OPEC, on the other hand, remains more optimistic about demand growth, expecting it to increase by 580 thousand barrels per day year-over-year.
In contrast, European gas prices have firmed this week, with prices pushing back above €60/MWh. However, despite concerns around Europe's gas storage trajectory, investment funds trimmed their net long in TTF by 16.6 TWh over the latest reporting week.