Oil Prices Drop as Weaker Demand Forecasts Offset Strait of Hormuz Disruptions

Oil prices fell on Thursday as investors weighed weaker global demand forecasts and higher US crude stocks. Brent futures dropped $1.54, or 1.7%, to $87.44 a barrel, trimming gains from the previous six sessions. U.S. West Texas Intermediate (WTI) crude declined $1.61, or 1.9%, to $81.66 after advancing over the past five days.

The large crude oil build in the US last week was cited as a headwind for prices by UBS analyst Giovanni Staunovo. He added that the downside should be limited as long as flows through the Strait of Hormuz remain depressed.

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 predicted a contraction of 1.6 million bpd in consumption this year, versus a forecast of 1 million bpd last month.