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Oil prices fell below $100 per barrel amid growing concerns over slowing global demand and geopolitical tensions. The benchmark Brent crude dropped to $97.50, marking a 2.3% decline as traders reacted to mixed signals from OPEC+ production decisions and weaker-than-expected economic data from China. Analysts highlight that the market is grappling with a fragile balance between supply cuts and weakening demand, particularly in energy-intensive sectors like manufacturing and transportation. This volatility impacts energy markets and broader financial assets, including energy stocks and commodities-linked ETFs. Traders are closely monitoring upcoming OPEC+ meetings and U.S. inventory reports to gauge potential price movements. A sustained break below $95 could trigger further bearish momentum, while a rebound above $105 might signal renewed buyer interest. For Gulf investors, the decline in oil prices raises concerns about regional economic stability and fiscal budgets. Key assets to watch include Brent crude, WTI, and energy sector equities. The next critical catalysts will be the OPEC+ policy review in June and U.S. non-farm payrolls data, which could influence monetary policy expectations and commodity demand trajectories.
