Oil prices are dropping mainly due to the end of the U.S. summer driving season, which lowers demand, combined with an increase in supply from major oil producers ending voluntary output cuts. There is also growing inventory expected globally due to seasonal declines in refining activity. Additionally, uncertainty about geopolitical tensions, particularly surrounding Russian oil supply, and continued demand concerns in developed markets are influencing prices downward. However, some factors like ongoing demand growth in Asia and geopolitical risks keep prices somewhat supported. Analysts forecast Brent crude could fall to around $63 per barrel in Q4 2025 due to these combined factors.
