Oil Prices Sink as OPEC Cuts Demand Forecast and Supply Risks Linger
Oil prices took a hit on Thursday as OPEC cut its forecast for global oil demand growth in 2026, citing weaker prospects. Global benchmark Brent crude fell by 0.92% to $88.16 a barrel, while WTI crude dropped 1.07% to $82.38 a barrel.
The International Energy Agency (IEA) also trimmed its outlook for oil consumption, anticipating a decline of 1.6 million barrels per day this year. This reduction is attributed to restricted fuel supplies and higher prices caused by the Hormuz disruption, which has dampened demand.
Additionally, US crude inventories surged last week, with commercial stocks increasing by 17.4 million barrels to 424.4 million barrels. Analysts had expected a decline of 1.4 million barrels, indicating a larger-than-anticipated build-up in storage.
The ongoing conflict between Iran and the US continues to pose supply risks, as attacks on shipping in key waterways have disrupted navigation and reduced transparency in shipping data.