Oil Prices Slump as Weaker Demand Outlook Takes Hold

Oil prices dropped on Thursday as investors assessed weaker global demand and higher US crude stocks. Brent futures fell $2.20, or 2.47%, to $86.78 a barrel by 1324 GMT.

The decline was also attributed to the large build in US crude stocks last week, which is a headwind for prices according to UBS analyst Giovanni Staunovo.

Despite this, prices found support from supply disruptions in the Middle East and the Black Sea region due to ongoing tensions between the US and Iran over control of the Strait of Hormuz.