Oil Prices Fall on Lower Demand Forecasts Amid Supply Risks

Oil prices fell sharply on Thursday, August 13, as major forecasters downgraded their outlooks for global oil demand, though concerns over supply disruptions from the ongoing U.S.-Israeli conflict with Iran continued to limit the decline. Brent crude futures dropped $1.29, or 1.5%, to $87.69 a barrel, while U.S. West Texas Intermediate crude fell $1.30, or 1.6%, to $81.97 a barrel during Asian trading.

The decline followed a volatile session on Wednesday, when conflicting statements from the U.S. and Iran over control of the Strait of Hormuz triggered sharp price swings. The downward pressure intensified after the Organization of the Petroleum Exporting Countries and the International Energy Agency released updated forecasts on Wednesday. OPEC lowered its 2026 global oil demand growth forecast to 580,000 barrels per day, marking its fourth downward revision this year. The IEA projected that oil demand will contract by 1.6 million barrels per day this year, a significant reversal from its previous estimate for growth of 1 million barrels per day. Both organizations cited slowing economic growth, tighter fuel availability, and elevated energy prices linked to the conflict as...