Brent crude prices fell sharply in August, snapping a three-month rally as weak demand indicators and rising trade tensions weighed heavily on the market.
After climbing steadily since May, Brent settled the month at $67.37 per barrel, representing a 6% drop from July’s closing price of $71.71. This translates to a monthly loss of about $4.34 per barrel.
The decline was driven largely by the US decision to double tariffs on Indian imports to 50%, which triggered fears of weaker trade flows and energy demand. Analysts said the slowdown in fuel consumption at the end of the summer season also contributed to the decline.
Earlier gains had been fueled by positive developments: in May, Brent rose 2.6% to $62.60 after Trump delayed EU tariff deadlines; in June, a trade deal with China pushed prices 6.2% higher; and in July, renewed sanctions on Iran and Russia lifted Brent 7.9% to $71.71.
Industry experts warn that the market may now face a potential supply glut. According to Kate Dourian of the Arab Gulf States Institute, OPEC+ has already begun unwinding voluntary production cuts earlier than expected, which could worsen oversupply concerns.
Similarly, Osama Rizvi of Primary Vision cautioned that refinery runs remain elevated, which may result in stockpiling if demand continues to weaken.
Analysts expect Brent to remain range-bound in the coming months, with a stronger likelihood of prices slipping into the $50 range than rebounding toward the $70 mark.
