Oil Prices Rise Amid Middle East Tensions, Contrarian Outlook on Demand
Oil prices rose slightly on Wednesday as attacks on ships in the Middle East continued and talks to end the Iran war hit an impasse. Brent futures settled up 7 cents at USD 88.98 a barrel, while US West Texas Intermediate crude rose 7 cents to USD 83.27.
The gains were limited after forecasters cut global oil demand projections for 2026 by Simon-Peter Massabni, head of business development at brokerage XS.com: 'The continued strength in oil prices comes as markets grow increasingly doubtful that an agreement can soon be reached to ease disruptions to crude flows from the region or prevent another escalation of the conflict.'
The Organisation of the Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day. The International Energy Agency cut its 2026 demand projections and now expects a 1.6 million bpd contraction this year.