Oil Prices Wobble Amid Weakened Demand Projections and Mideast Attacks

Oil prices steadied in volatile trading on Wednesday, after forecasters cut projections for 2026 global oil demand. The Organisation of the Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day. This move followed a similar downward revision from the International Energy Agency (IEA), which now expects a 1.6 million bpd contraction in supply this year and an overall 2026 deficit of around 1.27 million bpd.

Despite these developments, U.S. West Texas Intermediate crude rose 11 cents to $83.31, while Brent futures dropped by 3 cents to $88.88 a barrel. Analysts cited unusual weak crude exports and increased imports as the main drivers behind a surprise build in U.S. crude stocks last week.

Tensions in the Middle East also contributed to price volatility, with attacks on ships in the region continuing despite US-Iran ceasefire talks hitting an impasse. Senior Iranian officials have stated that there are no discussions between Iran and the US regarding extending their ceasefire agreement, as Tehran views the deal as having no start date.