Key facts
- Oil prices fell on Thursday.
- Weaker global demand outlook and increased U.S. crude stocks contributed to the decline.
- Supply disruptions and tensions in the Strait of Hormuz offered support.
- OPEC reduced its world oil demand growth forecast for 2026.
- The IEA revised its contraction forecast for oil demand this year.
Oil prices experienced a decline on Thursday, primarily driven by anticipations of diminished global demand and a rise in U.S. crude inventories. These factors weighed on the market, despite ongoing support from supply disruptions and heightened tensions in the Strait of Hormuz.
Market participants are closely monitoring forecasts from key energy organizations. Investors are factoring in OPEC's recently adjusted outlook, which includes a reduced forecast for world oil demand growth in 2026. Concurrently, the International Energy Agency (IEA) has revised its own forecast, now projecting a contraction in oil demand for the current year.
The interplay between these demand-side concerns and supply-side risks, such as geopolitical instability in critical shipping lanes, continues to shape the oil market.