Oil Markets Absorbed Hormuz Shutdown Faster Than Washington Predicted
Brent fell from $103 a barrel in Q2 to a projected $70 in Q4, as demand dropped 1.2 million barrels daily.
- Shut-in production eased to 8.3 million barrels daily in June, down from 11.2 million in May.
- Gulf producers rerouted supply around the strait while Americas exporters raised shipments to fill the gap.
- Washington and OECD allies tapped strategic reserves as forecasters now peg 2027 Brent at $65.
Why it matters: An agency admitting the market outran its forecast is confessing it never understood the machine it models.
U.S. Energy Information Administration, Short-Term Energy Outlook (Global Oil Markets) ↗ · Jul 12, 20267/12/26 · ✓ Checked✓ Check