Oil Price Slide Points To Demand Destruction As Stagflationary Consumer Sentiment Persists Globally

2026-07-01 09:22:36 ET

In my previous articles tracking the oil demand destruction and supply disruption, I argued that the upward move in crude was a supply shock rather than a demand signal, that the futures market's $20 discount to spot was the market pricing supply recovery before spot prices accepted it, and that the cleaner bullish trade sat in tankers and freight rather than in the commodity itself. The data and price action since those articles were published have confirmed that demand destruction thesis as the US crude oil futures have come down from the highs at $119 to $69 throughout my coverage of the asset and have even given us more data to work with that points towards even further demand destruction and supply expansion. This article will aim to advance the argument forward, incorporating the IEA's June Oil Market Report, the June STEO, and the most recent EIA weekly data....

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