Brent crude remained under pressure on Thursday, falling to around $73.13 per barrel as investors continued to unwind the geopolitical risk premium built into prices earlier this month.
From a technical perspective, Brent has shifted its focus toward the $70–72 per barrel area on the daily chart after extending its decline for a fourth consecutive session.
The latest selloff reflects growing confidence that supply disruptions in the Middle East are becoming less likely. Progress in US-Iran negotiations has improved the outlook for global oil supply, while an increasing number of tankers have resumed normal transit through the Strait of Hormuz, easing concerns over potential shipping disruptions.
Supply expectations have also improved as additional crude from the Middle East and West Africa reaches the market. At the same time, the temporary US waiver allowing purchases of already-loaded Iranian oil has further increased available supply.
Market sentiment has shifted accordingly. Brent's prompt spread has moved into contango for the first time since the Middle East conflict began, signaling expectations of a more balanced oil market and reduced near-term supply tightness.
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