Oil Prices Drop on IEA Demand Cut and Supply Glut

Oil prices declined sharply on Thursday, driven by a downgraded global demand forecast from the International Energy Agency and signs of ample supply, even as geopolitical tensions in the Middle East showed tentative signs of easing through ongoing U.S.-Iran negotiations.

Brent crude futures settled at $67.52 per barrel, down $1.88 or 2.71 percent, while U.S. West Texas Intermediate crude finished at $62.84 per barrel, a decrease of $1.79 or 2.77 percent. The benchmarks had earlier gained support from concerns over U.S.-Iran relations but reversed course following the IEA's monthly report, which projected slower-than-expected growth in global oil demand this year and a significant surplus persisting despite supply disruptions in January.

The IEA's assessment highlighted a reduced demand outlook extending into 2026, contributing to market expectations of oversupply. Analysts noted that traders are anticipating increased production from Venezuela, adding further downward pressure. On the supply front, Russia's seaborne oil products exports rose 0.7 percent in January from December to 9.12 million metric tons, bolstered by high fuel output and lower domestic demand during the...