Global oil prices fall more than $1 per barrel

Global oil prices extended their decline on Thursday (August 13), with both major benchmarks falling by more than $1 a barrel amid weaker demand projections and continued uncertainty over the situation in the Gulf.

Brent crude, the international benchmark, fell $1.29, or 1.5 per cent, to $87.69 a barrel. US West Texas Intermediate (WTI) crude dropped $1.30, or 1.6 per cent, to $81.97, according to a report by Al Jazeera.

The decline came after the Organisation of the Petroleum Exporting Countries (OPEC) lowered its forecast for global oil demand growth in 2026 in its monthly oil market report released Wednesday. OPEC now expects demand growth of around 580,000 barrels per day.

The International Energy Agency (IEA) has also revised its outlook, estimating that global oil demand could fall by as much as 1.6 million barrels per day this year, up from its previous forecast of a 1 million-barrel-per-day decline.

The IEA attributed the weaker demand outlook partly to disruptions and tighter fuel supplies linked to the crisis in the Strait of Hormuz, which have contributed to higher energy prices and weighed on consumption.

Meanwhile, diplomatic efforts between Iran and the United States to end the conflict in the Gulf have yet to produce a breakthrough. A senior Iranian source said Wednesday that recent talks aimed at implementing an interim agreement reached in June and setting a timeline for its implementation had made no significant progress.

The uncertainty surrounding the negotiations continues to keep energy markets on edge, while weaker demand expectations are adding downward pressure on crude prices.

Sources: Al Jazeera, The Times of India