Brent Crude slid to $83 per barrel and WTI settled near $80 following Sunday’s announcement, marking a sharp reaction to the potential end of a 100-day blockade. While the move promises to clear a critical energy artery, experts at Bloomberg Economics caution that the surge in Chinese demand—absent for the past three months—will likely offset these gains. Should energy flows remain constrained during the recovery period, the resulting market tightness could force oil prices back upward.

China’s recent absence from the market served as a primary ceiling on global prices, acting as a counterbalance to U.S. export records and international strategic stockpile releases. In May, Chinese imports hit their lowest levels since October 2017, as Beijing opted to tap domestic reserves rather than pay premium rates. With refinery runs reduced and a domestic pivot toward electric vehicles accelerating, the scale of China’s eventual return remains the defining variable for the energy sector. Analysts expect that even if the agreement holds, reaching pre-crisis traffic levels will be a months-long process, leaving global markets in a precarious state of transition.