Oil Prices Steady as Demand Forecasts Cut Amid Middle East Tensions

Oil prices steadied in volatile trading on Wednesday after forecasters cut their projections for 2026 global oil demand.

The Organisation of the Petroleum Exporting Countries (OPEC) lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day.

Rival forecaster the International Energy Agency (IEA) slashed its 2026 demand projections and now expects a 1.6 million bpd contraction this year.

However, the IEA is also predicting a 4.3 million bpd drop in supply this year, and an overall 2026 deficit of around 1.27 million bpd.

The price movements came as U.S. crude stocks posted a surprise build and made their largest weekly gain since January 2023 last week as exports slumped.