Brent Crude Remains at $101/Barrel Despite 11.1M B/D Supply Drop Since February as Demand Destruction Exceeds Expectations

According to JP Morgan strategist Natasha Kaneva on July 26, global crude oil supply has fallen 11.1 million barrels per day since February amid the US-Iran conflict, pushing global inventories to historical lows. However, Brent crude remains near $101 per barrel, approximately $20 below early-war highs in April-May, as demand destruction has accelerated beyond market expectations. The International Energy Agency now forecasts global oil demand will decline by 1 million barrels per day in 2026, more than double its May projection of 420,000 barrels per day.
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