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ING analysts Warren Patterson and Ewa Manthey observed a decline in oil prices as Persian Gulf supply recovery progresses, with ICE Brent crude falling over 1%. They argue the recent sell-off appears exaggerated due to persistently tight oil markets and sluggish recovery in Strait of Hormuz exports. The analysts highlight that despite increased production from Gulf states, global demand remains resilient, and geopolitical tensions in the region could disrupt flows. For traders, the price action reflects a tug-of-war between supply normalization and lingering demand strength. Market participants are closely monitoring OPEC+ policy decisions and potential disruptions in key export routes like the Hormuz Strait. The key focus now shifts to whether the current price correction is temporary or signals a broader trend, with technical levels at $80 per barrel acting as a critical support for Brent crude.
