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

Oil prices eased on Thursday as Brent futures slipped 91 cents, a decline of 1%, to $88.07 per barrel by 0800 GMT, Business Recorder reported. The benchmark had gained over the previous six sessions, and this fall trimmed that advance. US West Texas Intermediate crude also dropped, losing 96 cents, or 1.2%, to $82.31 after a five-session rise. Investors weighed a softer demand outlook and rising US stocks, while the blocked Strait of Hormuz and supply disruptions limited losses.

US commercial crude stocks posted their biggest weekly increase since January 2023 as exports fell, the Energy Information Administration showed. Stockpiles rose 17.4 million barrels to 424.4 million in the week ended August 7, the highest level since June 5, against a Reuters poll expectation of a 1.4 million-barrel draw. OPEC cut its estimate of 2026 global oil demand growth to 580,000 barrels per day in its monthly report. The IEA now expects consumption to fall 1.6 million bpd this year, against 1 million bpd in its earlier projection.

Ongoing supply problems in the Middle East and Black Sea region also propped up prices. A senior Iranian source said on Wednesday that talks to revive the June interim US-Iranian deal had made no progress, with no timeframe agreed for its implementation. Kpler shipping data showed Strait of Hormuz crossings, excluding container ships, fell to five on Wednesday, the lowest level in three weeks.