Oil Prices Fall Amid Lower Demand Forecasts, Deadlock in US-Iran Talks
Oil prices took a hit on Thursday as forecasters lowered global oil demand projections for 2026 due to disruptions from the US-Israeli war on Iran. Despite the deadlock in US-Iran talks, supply constraints from the conflict maintained some floor for the market.
Brent futures dropped $1.29, or 1.5%, at $87.69 a barrel by 0100 GMT, while US West Texas Intermediate (WTI) crude fell $1.30, or 1.6%, to $81.97.
The Organisation of Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day in its monthly oil market report on Wednesday. The International Energy Agency (IEA) also cut its forecast for this year, expecting a 1.6 million bpd contraction in consumption.
A surprise build in US commercial crude oil inventories added pressure to prices. Crude inventories rose by 17.4 million barrels to 424.4 million barrels in the week ended August 7, their highest since June 5.