Oil drops on lower demand forecasts despite deadlock in US-Iran talks

Business Recorder reported that Brent futures slipped $1.29, or 1.5 per cent, to $87.69 a barrel early on Thursday, while West Texas Intermediate fell $1.30 to $81.97. The move followed fresh cuts to 2026 global demand forecasts. OPEC trimmed its growth forecast to 580,000 barrels per day, and the International Energy Agency now expects consumption to contract by 1.6 million bpd this year.

Separately, the Energy Information Administration said US commercial crude stocks climbed by 17.4 million barrels to 424.4 million in the week ended August 7. That was the steepest weekly build since January 2023 and well above a Reuters poll that had expected a 1.4 million-barrel draw. Exports slumped during the period, adding to pressure on prices.

Still, the stalled talks between Iran and the United States to end the Gulf war are keeping prices firm. A senior Iranian source said no progress had been made on reviving the June interim agreement or setting a timeline for its implementation. Attacks on shipping in the Strait of Hormuz and Bab el-Mandeb on Tuesday point to lasting supply risk, while Haitong Futures analysts said ships turning off their tracking signals make actual supply levels harder to gauge.