Oil Prices Slide for Third Consecutive Day—Is the Rally Over?

Black gold's losing streak hits day three as traders sweat over demand.

Why the dip matters: Energy markets are flashing warning signs just as summer driving season peaks. Either the world's using less crude—or somebody's playing games with inventory reports.

Behind the numbers: Three straight red candles on the oil chart won't trigger panic yet, but hedge funds are already adjusting their algo strategies. Remember when oil was 'supposed' to hit $150 this year? Classic Wall Street groupthink.

The Saudis will probably cut production again by Friday—because nothing fixes oversupply like artificial scarcity. Meanwhile, electric vehicle adoption keeps chipping away at gasoline's monopoly. Funny how markets eventually correct, isn't it?

EU natural gas steadied after a three-day dip

Meanwhile, European gas prices steadied after sliding for three days, as traders weighed potential demand hot spots that could compete with the region’s efforts to refill reserves. Benchmark futures were around €33 per megawatt‑hour by Tuesday, rebounding from a three-week trough reached the day before.

Europe made solid progress in building up its storage ahead of winter, yet it now finds itself in competition with other regions for LNG supplies. 

Egypt, for instance, has ramped up its fuel imports after bringing two floating LNG terminals online. In Asia, above‑average temperatures in Japan could push up power use, and southern Europe is bracing for blistering heat that may increase electricity demand.

IEA expects global gas demand to increase in 2026

A fresh outlook from the International Energy Agency (IEA) points to stronger global gas demand in 2026, as new LNG volumes ease tight market conditions. The agency’s latest Gas Market Report notes that, after a slowdown this year, looser supply‑demand balances are expected next year, although significant uncertainties remain.

Market fundamentals were under strain in the first half of 2025, the IEA said, as lower Russian pipeline exports to the EU, only modest growth in LNG output, along with higher injections into European storage, kept supply tight. 

Against a backdrop of economic uncertainty, natural gas consumption growth is expected to slow down from 2.8% (2024) to around 1.3% by the end of 2025. Much of this year’s increase is set to come from Europe and North America, while growth in the price‑sensitive Asia‑Pacific is projected to be the weakest since the 2022 energy crisis.

Looking ahead, the IEA expects demand growth to pick up in 2026, rising to roughly 2% as a significant surge in LNG supply will ease market pressures. LNG exports are projected to climb by 7 percent, or 40 billion cubic metres, next year, the largest annual rise since 2019, driven by new projects in the US, Qatar, and Canada.

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