WTI Oil Prices Decline as Geopolitical Risks and Weaker Demand Forecasts Offset Supply Disruptions
West Texas Intermediate (WTI) Oil prices declined by 1.35% on Thursday, trading around $80.50 per barrel as traders weigh weaker demand forecasts from OPEC and the International Energy Agency (IEA).
The Strait of Hormuz remains closed, with both the US and Iran claiming control, keeping a geopolitical risk premium embedded in energy prices.
OPEC now expects global oil demand to grow by 580,000 barrels per day (bpd) in 2026, down from its previous forecast of 780,000 bpd. The IEA is more bearish, forecasting demand to fall by 1.6 million bpd over the same period.
The technical picture points to neutral momentum despite heightened price volatility, with WTI trading below the 20-day Simple Moving Average (SMA) and the Relative Strength Index (RSI) hovering near the neutral 50 mark.