Crude Prices Slide as Bearish Demand Revisions Offset Hormuz Fears

Global crude prices declined Thursday as bearish demand revisions and an unexpected build in U.S. inventories outweighed lingering supply fears tied to the Strait of Hormuz.

Brent futures fell below $88, while West Texas Intermediate slipped toward $82, erasing some of the gains accumulated over the previous week.

The most immediate catalyst for Thursday's selloff came from U.S. inventory data, which showed commercial crude stockpiles surged by 17.4 million barrels to 424.4 million barrels in the week ended Aug. 7.

Both OPEC and the International Energy Agency downgraded their demand outlooks on Wednesday, with the IEA projecting a 1.6 million barrel per day contraction in global oil consumption this year.