Weaker Demand Forecasts Temper Oil Price Gains
Oil prices eased on Thursday after gains in previous sessions due to concerns about weaker global demand. The Organization of Petroleum Exporting Countries (OPEC) lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day.
The International Energy Agency (IEA) also cut its consumption forecast by 1.6 million bpd this year, citing restricted fuel supplies and higher prices due to the US-Israeli war on Iran.
Crude inventories in the US rose by 17.4 million barrels to 424.4 million barrels in the week ended August 7, their highest since June 5, according to the Energy Information Administration.
The deadlocked talks between Iran and the US to end the war in the Gulf have kept prices elevated, with a senior Iranian source stating that there had been no progress in reviving the interim deal agreed in June.