Oil Prices Retreat On Demand Concerns

(RTTNews) - Oil prices retreated from recent highs on Thursday amid expectations of weaker global demand this year.

Brent crude futures fell 2.1 percent to $87.13 a barrel, snapping a six-day advance after EIA data showed a massive increase in U.S. oil inventories last week and the International Energy Agency (IEA) cut its 2026 global oil demand outlook. WTI crude futures were down 2.1 percent at $81.50 a barrel.

U.S. crude oil inventories saw a massive increase of 17.4 million barrels during the week ending August 7, the U.S. Energy Information Administration said in its weekly inventory report released on Wednesday.

A day before, the American Petroleum Institute reported that crude oil inventories had risen by a hefty 9.072 million barrels in the period.

In its monthly oil market report for August, the IEA has revised its global oil demand forecast for 2026 down by 1.6 million barrels per day, 510,000 barrels a day more than its estimate in last month's report - saying elevated fuel prices are likely to weigh on oil consumption.

The Organization of Petroleum Exporting Countries (OPEC) also predicted a decline in crude oil demand in 2026, with China, India and other Asian countries expected to see a weaker year-on-year oil demand growth in the year.

The organization expects global oil demand to grow by 600,000 barrels per day in 2026, down from an estimated growth of 800,000 barrels per day in last month's assessment.

Meanwhile, as attacks on ships in the Middle East continue, the U.S. and Iran remain deadlocked over efforts to permanently end their five-month-old war.

U.S. President Donald Trump reiterated that the United States is in control of the Strait of Hormuz and there is nothing Iran can do about it.

After reports emerged that the United States and Iran have agreed to extend a 60-day ceasefire brokered by Pakistan, a senior Iranian official reportedly said there had been no progress in talks to revive a June interim agreement and define a time frame to implement it.