Oil Prices Plummet as Weakened Demand Forecasts Overshadow Hormuz Talks
Oil prices plummeted on August 13 as investors became increasingly concerned about weakened global demand forecasts and higher US crude stocks. The Brent futures contract declined by $0.42 or 0.47% to $88.56 a barrel, while the US West Texas Intermediate (WTI) crude fell by $0.55 or 0.66% to $82.72.
The lack of progress in talks over the Strait of Hormuz and disruptions to supply provided some support for oil prices. However, analysts noted that there had been 'virtually no new developments' in US-Iran relations, with both sides remaining at an impasse.
A significant build-up in US crude inventories also contributed to the decline in oil prices. U.S. commercial crude inventories surged by 17.4 million barrels to 424.4 million barrels in the week ending August 7, marking the largest weekly increase since January 2023.