Crude Oil Prices Plummet Amid US Inventory Surge and Weakening Demand

Crude oil prices declined on Thursday as a sharp increase in US inventories and weakening global demand expectations outweighed concerns over supply disruptions in the Middle East.

Brent crude oil dropped $1.66 or 1.9 percent to $87.32 per barrel, while U.S. West Texas Intermediate crude fell $1.62 or 1.95 percent to $81.65 per barrel.

The surge in US commercial crude inventories was driven by weaker exports and stronger imports. The increase of 17.4 million barrels to 424.4 million barrels in the week ended August 7 is the largest weekly build since January 2023, contrasting with market expectations for a 1.4 million-barrel decline.

The Organization of the Petroleum Exporting Countries lowered its forecast for global oil demand growth in 2026 to 580,000 barrels per day, while the International Energy Agency forecasts a contraction of 1.6 million barrels per day this year due to elevated energy prices and supply disruptions.