Why aren't oil prices higher? Staggering drop in energy demand leaves strategists puzzled.

Oil prices have remained stubbornly flat even as global energy demand has taken an unexpected dive, leaving market strategists scrambling for explanations. Typically, a drop in demand would push prices lower, but crude benchmarks have held above $70 per barrel thanks to supply-side factors. The main reason appears to be the discipline of OPEC+ producers, who have maintained production cuts despite pressure to pump more. At the same time, geopolitical risks in the Middle East and sanctions on Russia have added a risk premium that offsets some of the demand weakness. For American consumers, this means gasoline prices have not fallen as much as anticipated, providing limited relief at the pump. Yet for oil companies and investors, the stability is a double-edged sword: it supports revenues but also masks deeper demand problems that could eventually crack the market. Analysts now watch for signals from the International Energy Agency and the U.S. Energy Information Administration to see if demand will recover or continue to falter.