Oil's 'Stunning Reversal' Rekindles Global Glut Fears; Total CEO Says Mideast Producers 'Desperate to Sell'
- Brent crude has dropped back to roughly $72/barrel, below pre-conflict levels, as the geopolitical risk premium from the Iran crisis has been wiped out by surging supply from Saudi Arabia, the UAE, and Russia, per Bloomberg and industry surveys.
- TotalEnergies CEO Patrick Pouyanne said Middle East producers are now "desperate to sell oil stocks," and Bloomberg reports tankers have done a U-turn in the Strait of Hormuz, with some diverting to load Iran crude directly instead.
- Goldman Sachs and other banks expect the oversupply to persist into 2027, a sharp reversal from the scarcity-driven spike that pushed prices to multi-year highs just weeks ago.