Oil Prices Slip on Weaker Demand Outlook and Higher US Stocks

Oil prices dipped on Thursday as investors assessed weaker global demand prospects and higher US crude stocks. Brent futures fell $1.66, or 1.9%, to $87.32 a barrel, trimming gains over the prior six sessions.

The large crude build in the US last week is a headwind for crude prices, said UBS analyst Giovanni Staunovo, adding that the downside for prices should be limited as long as flows through the Strait of Hormuz remain depressed.

OPEC and IEA have both lowered their 2026 oil demand forecasts. OPEC reduced its world oil demand growth forecast to 580,000 barrels per day in its monthly oil market report, while the IEA expected a contraction of 1.6 million bpd in consumption this year.