Oil prices edged lower on Thursday as investors assessed the International Energy Agency's downward revision to its global oil demand forecast for 2026, offsetting earlier gains driven by concerns over potential U.S.-Iran tensions. Brent crude oil futures fell 19 cents, or 0.27%, to $69.21 per barrel as of 1232 GMT, while U.S. West Texas Intermediate crude declined 8 cents, or 0.12%, to $64.55 per barrel.
The International Energy Agency reported that global oil demand will rise more slowly than previously anticipated this year. Despite supply outages that reduced production in January, the IEA projected a sizeable surplus in the market for the period ahead. Both Brent and WTI benchmarks reversed earlier gains to turn negative following the release of the IEA's monthly report.
Prior to the agency's announcement, prices had derived support from geopolitical concerns regarding U.S.-Iran relations. U.S. President Donald Trump stated after meetings with Israeli Prime Minister Benjamin Netanyahu on Wednesday that the two nations had not yet reached a definitive agreement on how to proceed with Iran, though he indicated that negotiations with Tehran would continue.
Trump had previously suggested on Tuesday that he was considering deploying a second aircraft carrier to the Middle East if a deal with Iran cannot be secured. The timing and location of the next round of talks remain unannounced. A substantial increase in U.S. crude inventories weighed on prices during the session.
According to data from the Energy Information Administration, U.S. crude inventories rose by 8.5 million barrels to 428.8 million barrels last week, significantly surpassing the 793,000-barrel increase anticipated by analysts in a Reuters poll. U.S. refinery utilization rates decreased by 1.1 percentage points to 89.4% during the week, EIA data showed. On the supply front, Russia's seaborne oil products exports in January increased by 0.7% from December to 9.12 million metric tons, driven by elevated fuel output and a seasonal reduction in domestic demand, according to industry sources and Reuters calculations.
Source: Reuters, via EnergyNow.com
Source: energynow.com