Oil Prices Plummet on Lower Demand Projections and US Inventory Build
Oil prices plummeted more than $1 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) reduced its world oil demand growth forecast for 2026 to 580,000 barrels per day in its monthly oil market report on Wednesday.
Meanwhile, the International Energy Agency (IEA) expects a 1.6 million bpd contraction in consumption this year, down from a previous forecast of one million bpd last month, due to restricted fuel supplies and higher prices from the war.
The deadlocked talks between Iran and the US to end the war have kept prices elevated, despite a surprise build in US commercial crude oil inventories, which posted their largest weekly gain since January 2023 last week as exports slumped.