Oil Prices Plummet Amid Reduced Demand Forecasts
Oil prices took a hit on Thursday, plummeting by over $1 per barrel due to reduced forecasts of global crude demand in 2026. The Organization of the Petroleum Exporting Countries (OPEC) lowered its estimate for oil demand growth next year to 580,000 barrels per day.
The International Energy Agency also predicted a contraction in oil consumption this year, citing supply constraints and price increases stemming from the U.S.-Israeli war on Iran as contributing factors. However, concerns over regional supplies and potential disruptions kept prices relatively high despite the decline.
U.S. commercial crude inventories saw a sudden increase of 17.4 million barrels to reach 424.4 million barrels in the week ending August 7, the highest level since June 5, according to data from the U.S. Energy Information Administration.