Oil Prices Plummet Amid Lower Demand Forecasts and Supply Constraints
Oil prices plummeted 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, oil prices have been kept elevated by supply constraints from the conflict.
The Organisation of Petroleum Exporting Countries (OPEC) reduced 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 also lowered its consumption forecast, expecting a 1.6 million bpd contraction this year.
Crude prices were further pressured by a surprise build in US commercial crude oil inventories, which rose by 17.4 million barrels to 424.4 million barrels last week. However, the deadlocked talks between Iran and the US have kept prices elevated.