Oil Prices Eased Amid Weaker Demand Outlook

Oil prices slipped on Thursday after gains in previous sessions, as attention shifted from supply concerns to weaker global demand forecasts. Brent futures dropped by $0.42 or 0.47%, reaching $88.56 a barrel at 0405 GMT. West Texas Intermediate (WTI) crude fell by $0.55 or 0.66% to $82.72, after advancing over the past five sessions.

A senior Iranian source stated that there was no progress in talks to revive an interim deal agreed upon in June and define a timeframe for its implementation. ING analysts noted that both the US and Iran remained in a deadlock, with little fresh development. The latest drone attack on Russia's Novorossiysk port did not damage oil infrastructure.

The key factor driving prices higher over the past week was the Strait of Hormuz, which remains closed. Attention turned to demand outlook following a surprise build in US crude stocks and lower consumption forecasts from OPEC and the International Energy Agency. The Organization of the Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day.