Oil Prices Slump on Weaker Demand Forecasts and Higher US Crude Stocks

Oil prices declined on Thursday due to weaker global demand forecasts and higher U.S. crude stocks, despite a lack of progress in talks over the blockaded Strait of Hormuz and disruptions to supply.

Brent futures fell by $0.91 or 1% to $88.07 a barrel at 0800 GMT, trimming gains from the prior six sessions. U.S. West Texas Intermediate (WTI) crude dropped by $0.96 or 1.2% to $82.31 after advancing over the past five sessions.

The decline in oil prices was attributed to a build-up of crude inventory in the U.S., which kept prices below $90 a barrel, along with lower demand estimates from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA).

OPEC lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day. The IEA also predicted a contraction of 1.6 million bpd in consumption this year, versus a previous forecast of 1 million bpd.