Oil Prices Plummet on Revised Global Demand Projections
Oil prices plummeted by over $1 on Thursday as forecasters revised downward their expectations for global oil demand in 2026, citing disruptions from the US-Iran conflict. According to the Organisation of Petroleum Exporting Countries (OPEC), world oil demand growth is now projected at just 580,000 barrels per day, a significant reduction from previous estimates.
The International Energy Agency (IEA) also weighed in, predicting a 1.6 million bpd contraction in consumption this year due to restricted fuel supplies and higher prices resulting from the conflict. This decline is even more pronounced than previously forecasted, with the IEA having initially predicted a 1 million bpd reduction.
Additionally, crude oil inventories in the US surged by 17.4 million barrels last week, reaching their highest level since June 5. While this may seem positive, it's actually a sign of declining exports and lower demand for oil.