Oil Prices Tumble on Reduced Demand Forecasts from OPEC and IEA

Oil prices declined on Thursday as investors focused on reduced demand forecasts from major forecasting bodies.

The West Texas Intermediate (WTI) fell to $82.11 per barrel, down 1.39% from the previous session, while Brent crude dropped to $87.92, down 1.19%. The losses extended through the European morning, with quotes reaching $81.32 for WTI and $87.04 for Brent.

The demand destruction deepens as both OPEC and the International Energy Agency (IEA) slashed their 2026 demand forecasts on Wednesday. The IEA now expects global oil demand to contract by 1.6 million barrels per day this year, a 510,000 barrel per day larger decline than its July estimate.

The market priced in the reduced demand rather than the geopolitical overhang, which had raised doubts about an immediate deal on the Strait of Hormuz. The underlying demand data is worse than the headline growth revisions suggest, with world crude demand falling from 81.26 million barrels per day in the second quarter of 2025 to 76.39 million in the second quarter of 2026.