Oil prices extend losses as chance of US strike on Iran recedes

Oil Price Movement - Oil prices fell in Asian trade, with Brent down 21 cents to $63.55 per barrel and WTI down 15 cents to $59.04 per barrel, as concerns about supply risks eased after the likelihood of a U.S. strike on Iran receded [1] - Both Brent and WTI had risen to multi-month highs earlier in the week due to protests in Iran and U.S. President Trump's signals regarding potential military action [2] Market Sentiment and Supply Outlook - Analysts noted that Brent prices have declined but remain higher than a week ago, influenced by Trump's statement to hold off on military strikes on Iran, indicating potential for greater volatility in oil prices due to political upheaval in Iran [3] - Despite geopolitical risks, analysts remain bearish on the expectation of longer supply in the market this year, suggesting that market sentiment is short-lived when fundamentals appear stable [4] Future Demand and Supply Projections - OPEC projected that oil supply and demand would remain balanced through 2026, with demand expected to rise in 2027 at a similar pace to this year [5] - Shell's 2026 Energy Security Scenarios presented a bullish outlook for energy demand, estimating that primary energy demand by 2050 could be 25% higher than last year [6]