Key facts
- Brent crude oil futures fell 20% from their late-March peak.
- Flows through the Strait of Hormuz remain low.
- Goldman Sachs attributes the decline to weaker demand.
- Destocking and reduced consumption are contributing factors.
- Demand for jet fuel, petrochemical products, and road fuel has weakened.
The oil market, which had been focused on supply disruptions in the Middle East, is now seeing prices fall due to weakening demand. Factors such as electric vehicles, public transit, and reduced fuel consumption are challenging traditional responses to oil price shocks. Goldman Sachs highlights that higher prices are impacting demand more than anticipated, particularly in key sectors and regions.