Oil Prices Crash as 2026 Demand Forecasts Tumble
Oil prices plummeted over $1 on Thursday as forecasters revised downward global oil demand projections for 2026, citing disruptions from the US-Israeli war on Iran. Brent futures dropped $1.29 to $87.69 a barrel, while WTI crude fell $1.30 to $81.97.
The Organisation of Petroleum Exporting Countries cut its world oil demand growth forecast for 2026 to 580,000 barrels per day, citing restricted fuel supplies and higher prices from the war. The International Energy Agency also reported a 1.6 million bpd contraction in consumption this year due to the same factors.
The market was further pressured by a surprise build in US commercial crude oil inventories, which rose by 17.4 million barrels to 424.4 million barrels last week. The deadlocked talks between Iran and the US to end the war have kept prices elevated, with analysts at Haitong Futures noting that navigation in key export routes has become increasingly hazardous.