Oil Prices Decline on Weak Demand and Higher US Stocks

Oil prices declined on Thursday due to weaker global demand and higher US crude stocks. Brent futures dropped by 91 cents, or 1%, to $88.07 a barrel, while US West Texas Intermediate (WTI) crude fell 96 cents, or 1.2%, to $82.31.

The decline was attributed to a build in US commercial crude oil inventories, which rose by 17.4 million barrels to 424.4 million in the week ended August 7. This is their highest level since June 5, according to data from the Energy Information Administration.

OPEC lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day in its monthly oil market report. The International Energy Agency (IEA) also reduced its demand estimate, expecting a contraction of 1.6 million bpd this year, compared to last month's forecast of 1 million bpd.

However, supply disruptions in the Middle East and the Black Sea continued to support oil prices. The Strait of Hormuz remained a concern, with no progress in talks over an interim US-Iranian deal agreed in June. The lack of agreement and ongoing conflicts in Ukraine also contributed to higher prices.