Oil prices slipped on Thursday as a surprise build in U.S. crude stocks and weaker demand forecasts from OPEC and the IEA offset persistent supply risk from deadlocked Iran talks. WTI crude fell to $83.11 a barrel and Brent to $88.87, both retreating after recent multi-session advances.
WTI and Brent retreat from recent highs
WTI crude fell 16 cents, or 0.19%, to $83.11 a barrel on Thursday, halting a five-session advance as traders weighed a surprise build in U.S. stockpiles against unresolved supply risk in the Middle East.
Brent futures slipped 11 cents, or 0.12%, to $88.87 a barrel by 0624 GMT, trimming gains built over the prior six sessions.
According to XS.com senior market analyst Antonio Di Giacomo, "Buyers continue to dominate in the short term" following the recovery over the past several sessions, though he added that the pace of the advance could also trigger volatility and profit-taking around current levels.
Crude stockpiles post their largest weekly build since 2023
U.S. commercial crude oil inventories rose by 17.4 million barrels to 424.4 million in the week ended August 7, their highest level since June 5, the Energy Information Administration said Wednesday. That compared with Reuters poll expectations for a 1.4 million-barrel draw, and marked the largest weekly gain since January 2023 as exports slumped.
OPEC and IEA both trim demand outlooks
The same day, OPEC lowered its 2026 world oil demand growth forecast to 580,000 barrels per day in its monthly report. The International Energy Agency went further, saying it now expects a contraction of 1.6 million bpd in consumption this year, up from a forecast of a 1 million bpd contraction last month, with demand curtailed by higher prices and restricted supply tied to the U.S.-Israeli war with Iran.
Iran talks stay deadlocked, keeping a floor under prices
A senior Iranian source said Wednesday there had been no progress in talks to revive an interim deal agreed in June or set a timeframe to implement it, leaving the prospect of reopening the Strait of Hormuz unchanged. That deadlock between Iran and the United States has kept a floor under prices even as the softer demand outlook weighs on the market.
Source: Investing.com
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