OPEC Cuts Oil Demand Forecast Amid US-Iran Conflict
Oil prices fell on Thursday due to lower demand forecasts for 2026, despite the ongoing US-Iran conflict. The Organisation of Petroleum Exporting Countries (OPEC) reduced its world oil demand growth forecast for 2026 to 580,000 barrels per day in its monthly oil market report on Wednesday.
The International Energy Agency (IEA) also lowered its global oil demand projection for this year, expecting a 1.6 million bpd contraction due to restricted fuel supplies and higher prices from the US-Israeli war on Iran. Oil prices were further pressured by a surprise build in US commercial crude oil inventories.
Crude inventories rose by 17.4 million barrels to 424.4 million barrels in the week ended August 7, their highest since June 5. However, the deadlocked talks between Iran and the US have kept prices elevated.