Oil Prices Edge Down Despite Ongoing Strait of Hormuz Disruptions
The stalemate over the Strait of Hormuz continues to weigh on global oil markets, but prices are edging down despite the uncertainty.
Brent crude, the international benchmark, fell 0.83% and stood at just above $88 a barrel at 11:26 a.m. ET, while West Texas Intermediate, the U.S. benchmark, dropped more than 1% to $82.36 a barrel at the same time.
A senior Iranian official told Reuters that there have been no breakthroughs in the conflict, with the U.S. showing no willingness to return to the interim agreement and define a timeframe for implementing its commitments.
The International Energy Agency (IEA) expects global demand to drop by 1.6 million barrels a day, a 510,000 increase compared to the July forecast. Global oil supply 'rose by 2.4 mb/d to 101.5 mb/d in July, but remained 6.3 mb/d below year-ago levels', the IEA added.