Oil Prices Plummet as Global Demand Forecasts Take a Hit
Crude oil prices declined on Thursday due to weaker global demand forecasts, offsetting concerns over supply disruptions linked to the Iran-US conflict.
Brent crude futures fell 42 cents, or 0.47%, to $88.56 per barrel, while US West Texas Intermediate (WTI) crude declined 55 cents, or 0.66%, to $82.72 per barrel, according to Reuters.
The decline came after both the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) lowered their forecasts for global oil demand. OPEC reduced its forecast for global oil demand growth in 2026 to 580,000 barrels per day, while the IEA expects global oil consumption to contract by 1.6 million barrels per day this year.
US crude inventories recorded their biggest weekly increase since January 2023, contributing to the price decline. The US Energy Information Administration reported that commercial crude inventories rose by 17.4 million barrels to 424.4 million barrels in the week ending August 7.