Oil Prices Plummet as Surging Inventories Offset Supply Disruptions
Oil prices slid on Thursday as a massive inventory surprise caught markets off guard. Brent crude dropped to $88.07 and WTI fell to $82.31, with both contracts trimming gains built up over the previous five to six sessions.
The Energy Information Administration reported that US commercial crude oil inventories rose by 17.4 million barrels in the week ended August 7, their largest weekly gain since January 2023. Analysts had forecast a draw of 1.4 million barrels.
OPEC and the IEA both downgraded demand forecasts, with OPEC cutting its 2026 oil demand growth forecast to 580,000 barrels per day. The IEA now expects a 1.6 million bpd drop in consumption this year, compared to its previous forecast for growth of 1 million bpd.
The Strait of Hormuz situation kept traders cautious, with vessel crossings dropping to a three-week low and supply disruption concerns alive.