Brent crude's 7% tumble questions supply fears, says Rabobank

Oil markets suffered a sharp reversal, with Brent futures sinking more than 7% and Singapore gasoil plunging nearly 11%, Rabobank Senior Market Strategist Benjamin Picton highlighted. The moves came despite ongoing geopolitical tensions and logistical disruptions that had previously stoked supply fears.

The steep declines raise questions about whether the market had overpriced supply risks or if demand-side weakness is finally overwhelming bullish narratives. The rout in oil products like gasoil suggests refined fuel markets are also coming under pressure.

Analysts are now reassessing the near-term outlook for crude, as the disconnect between physical supply disruptions and paper market pricing widens.