Oil Prices Plummet on Lower Demand Forecasts Amid Ongoing Iran Conflict
Oil prices dropped sharply on Thursday due to lower demand forecasts for 2026. The Organisation of Petroleum Exporting Countries (OPEC) lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day in its monthly oil market report.
The International Energy Agency (IEA) also reduced its global oil consumption forecast for this year by 600,000 barrels per day due to restricted fuel supplies and higher prices from the US-Israeli war on Iran. This led to a decline in Brent futures by USD 1.29, or 1.5%, to USD 87.69 a barrel, while WTI crude fell USD 1.30, or 1.6%, to USD 81.97.
The deadlocked talks between Iran and the US have kept prices elevated, according to Reuters. A senior Iranian source stated that there had been no progress in talks to revive the interim deal agreed in June and define a time frame to implement it.