Brent crude oil prices have experienced a notable decline, falling from over $80 per barrel in mid-January to around $70 per barrel, despite relatively stable and low global inventories. According to Goldman Sachs, this downturn is not primarily driven by changes in supply fundamentals but rather by a shift in market sentiment. Earlier concerns centered around potential disruptions to Russian and Iranian oil exports, which had supported prices. However, as these risks have eased, traders have turned their attention to weaker US economic growth, leading to a reassessment of global oil demand expectations.

Goldman Sachs notes that the recent selloff reflects concerns over softer US GDP growth, which could dampen fuel demand and weigh on oil prices. Although supply-side risks remain, particularly in geopolitically sensitive regions, markets are currently more focused on macroeconomic headwinds that may slow energy consumption. This shift has overshadowed what would typically be bullish fundamentals, such as low inventory levels. Moving forward, oil prices are likely to be influenced by key economic indicators from the US, as well as any renewed disruptions in major oil-producing nations.