Oil Prices Retreat Monday After Reaching a Near Six-Month High

Crude oil retreated Monday after reaching a near six-month high last week, as demand concerns competed with reduced inventories and geopolitical supply risks in global markets.

Crude gained last week amid geopolitical tensions and falling inventories. Monday’s retreat reflected the emerging effect of higher prices on consumption, adding a demand concern to the supply pressures behind the earlier rise.

Global inventories remain more than 500 million barrels below their level at the end of February even as supply continues to recover. That comparison shows a substantial gap remains despite the improving supply picture.

The International Energy Agency expects global oil demand to decline year over year in 2026. That forecast adds to a market facing recovering supply and geopolitical uncertainty.

Geopolitical risks, including potential Houthi attacks, could push prices higher. Those risks sit alongside an outlook for lower demand and inventories still well below their end-of-February level, leaving the market with competing pressures.