Oil drops on lower demand forecasts despite deadlock in US-Iran talks
Opec lowers its world oil demand growth forecast for 2026 to 580,000 barrels per day
Oil prices tumbled on Thursday (Aug 13) as global oil demand forecasts for 2026 were downgraded due to the disruptions caused by the US-Israeli war on Iran. The Organization of Petroleum Exporting Countries reduced its 2026 oil demand growth forecast to 580,000 barrels per day, while the International Energy Agency expects a 1.6 million bpd contraction in consumption.
Brent futures fell by US$1.29, or 1.5 per cent, to US$87.69 a barrel, while US West Texas Intermediate crude dropped by US$1.30, or 1.6 per cent, to US$81.97 a barrel. The EIA reported a 17.4 million barrel increase in US crude oil inventories to 424.4 million barrels, the highest since June 5, as exports declined. Deadlocked talks between Iran and the US to end the war in the Gulf have maintained elevated oil prices.
A senior Iranian source stated that no progress has been made in negotiations to revive the interim deal and set a timeline for its implementation. Attacks on shipping in the Strait of Hormuz and Bab el-Mandeb Strait pose further risks to crude supply from the region, forcing vessels to disable their signals and hindering the market's ability to track supply levels.
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