Oil Prices Plummet on Weakening Demand Prospects and Inventory Buildup

Global oil prices declined sharply on August 14 due to weakening demand prospects and increased US crude oil inventories. According to the US Energy Information Administration (EIA), US crude oil inventories rose by 17.4 million barrels in the week ending August 7, reaching a high of 424.4 million barrels since June 5.

The Organization of the Petroleum Exporting Countries (OPEC) lowered its forecast for global oil demand growth in 2026 to 580,000 barrels/day. The International Energy Agency (IEA) also predicts a decrease in oil consumption demand by 1.6 million barrels/day this year due to higher oil prices and limited supply.

Meanwhile, the market remains cautious about potential supply disruptions. On August 13, Yemen's Houthi forces reportedly attacked a Saudi Aramco oil refinery using drones.