Oil slips on weaker demand outlook and higher US stocks amid supply disruptions

Oil prices slipped on Thursday, declining more than 2% after a week of gains, due to concerns over weaker global demand and a surge in U.S. crude inventories. Brent futures dropped $1.91 to $87.07 per barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.02 to $81.25 per barrel. The U.S. Energy Information Administration reported that U.S. commercial crude oil inventories saw their largest weekly increase since January 2023, rising by 17.4 million barrels to 424.4 million barrels.

OPEC lowered its 2026 global oil demand growth forecast to 580,000 barrels per day, citing higher prices and supply disruptions due to the U.S.-Israeli war with Iran. Yemen's Houthi rebels reportedly attacked a Saudi Aramco refinery in Jazan with two drones, causing diesel cracks to hit an all-time high. Conflicting claims emerged over the control of the Strait of Hormuz, through which about 20% of global oil supply passes, with Iran and the U.S. at odds over its management.