Oil prices edge up as investors weigh US-Iran talks deadlock against lower demand
Forecasters revised down their oil demand outlooks as US-Iran talks stall
On Wednesday (Aug 12), oil prices saw a slight increase as tensions between the US and Iran remained unresolved and global oil demand forecasters lowered their projections for 2026. Brent futures climbed US$0.07 to US$88.98 per barrel, while US West Texas Intermediate crude rose US$0.07 to US$83.27. The gains were curtailed due to a recent revision by the Organisation of the Petroleum Exporting Countries (OPEC) and the International Energy Agency, which now anticipate a 1.6 million barrel per day (bpd) drop in demand for 2026 and a 4.3 million bpd reduction in supply.
The decline in demand was attributed to refiners struggling to secure sufficient crude supplies due to the closure of the Strait of Hormuz, leading to reduced refinery operations. Moreover, Iran's refusal to discuss extending their ceasefire with the US further dampened expectations of a resolution. The attacks on shipping in the Strait of Hormuz and Bab el-Mandeb Strait, crucial oil and gas routes, added to the market's unease.
Meanwhile, US crude stocks experienced an unexpected rise, marking the largest weekly increase since January 2023, driven by weak exports and increased imports.
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- Stocks inch up, oil dips as traders eye US-Iran talks channelnewsasia.com
