Commodities
Oil Prices Plummet as Global Demand Projections Slashed
Oil prices plummeted on Thursday as forecasters lowered global oil demand projections for 2026 due to disruptions from the US-Israeli war on Iran. The Organisation of Petroleum Exporting Countries (Opec) cut its world oil demand growth forecast for 2026 to 580,000 barrels per day.
The International Energy Agency (IEA) also expects a 1.6 million bpd contraction in consumption in 2026, down from a forecast of 1 million bpd in July. This comes as restricted fuel supplies and higher prices from the conflict have curtailed demand.
Oil 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 in the week ended Aug 7, their highest since Jun 5.