Oil Prices Plummet on IEA's Sharper Demand Forecast

The price of crude oil declined on Thursday after the International Energy Agency projected a decline in demand later this year. According to the IEA's August report, oil demand is expected to decrease by 1.6 million barrels per day.

This forecast is sharper than what the agency predicted in July, with a drop of about 510,000 barrels per day. Brent crude oil prices fell by 45 cents to $88.53 per barrel early Thursday, while West Texas Intermediate futures were down 54 cents to $82.73.

The IEA noted that crude oil prices hit a two-month high in July following the breakdown of peace talks between the United States and Iran. However, with expectations of diplomatic progress returning, oil prices have started to decline.