Oil Falls as Weak Demand Outlook and Rising U.S. Inventories Weigh
Oil prices declined on Thursday as investors assessed a weaker outlook for global demand and a sharp increase in U.S. crude inventories. Brent fell about 1.9% to $87.32 a barrel, while WTI dropped around 1.95% to $81.65.
Pressure came largely from U.S. crude stockpiles, which posted their biggest weekly increase since January 2023. Data from the Energy Information Administration showed inventories rose by 17.4 million barrels to 424.4 million, compared with market expectations for a decline of around 1.4 million barrels.
The demand outlook also weakened. OPEC cut its forecast for global oil demand growth in 2026 to around 580,000 barrels per day, suggesting consumption may expand at a slower pace than previously expected.
The International Energy Agency was also more cautious, forecasting global oil consumption to contract by around 1.6 million barrels per day this year, compared with its previous estimate of a 1 million barrel-per-day decline. High energy prices and supply disruptions linked to the U.S.-Israeli conflict with Iran have weighed on demand.
However, losses in oil prices remain limited by ongoing supply risks in the Middle East. The lack of meaningful progress toward reopening the Strait of Hormuz continues to restrict energy flows through the key waterway and keeps a geopolitical risk premium in the market.(mrv)
Source : Newsmaker.id
