Brent Crude Holds Above $87 as Geopolitical Tensions Offset Weak Demand Forecasts
Global crude oil markets have been experiencing sharp volatility due to ongoing US-Iran tensions over the Strait of Hormuz. Despite weakening demand forecasts from major energy agencies, Brent crude futures for October delivery traded at $86.77 per barrel on Friday, down 0.34%. The Organisation of Petroleum Exporting Countries (OPEC) lowered its 2026 global oil demand growth forecast to 580,000 barrels per day, while the International Energy Agency (IEA) projected a decline of 1.6 million barrels per day in 2026.
The supply disruption has kept oil prices elevated despite weakening demand prospects. The US-Iran standoff has led to a significant reduction in ship transits through the Strait of Hormuz, with only eight vessels passing through on one recent day. The IEA flagged a global supply shortfall of around 1.8 million barrels per day this quarter.
The domestic market mirrored global trends, with MCX crude oil futures reflecting the volatility. Oil marketing companies (OMCs) in India continued to shield consumers from international price fluctuations, keeping retail petrol and diesel prices steady throughout the week.