Oil prices slipped by more than one dollar on Thursday as a weaker outlook for global demand put further pressure on the market, while supply disruptions linked to the Middle East conflict continued to limit the decline. Global benchmark Brent crude fell 0.92 percent to $88.16 a barrel, while West Texas Intermediate crude declined 1.07 percent to $82.38 a barrel around 7:40 am IST on August 13, 2026, according to reporting from Times of India. The Organization of the Petroleum Exporting Countries cut its forecast for global oil demand growth in 2026 to 580,000 barrels per day in its monthly oil market report released on Wednesday.
This downward revision reflected weakening expectations for consumption globally. The International Energy Agency also reduced its outlook for oil consumption, expecting consumption to fall by 1.6 million barrels per day this year, compared with its earlier forecast of a 1 million barrel per day decline. The IEA attributed the reduced demand to restricted fuel supplies and higher prices caused by disruptions in the Hormuz region.
Pressure on oil prices intensified following data on US crude inventories. Commercial crude stocks increased by 17.4 million barrels to 424.4 million barrels in the week ended August 7, according to the Energy Information Administration. This represented the biggest weekly increase since January 2023 and took inventories to their highest level since June 5.
Analysts polled by Reuters had expected inventories to fall by 1.4 million barrels, making the actual increase a significant surprise to the market. Geopolitical tensions in the Middle East remained a key factor supporting prices despite downward demand pressures. Talks between Iran and the United States to end the war in the Gulf have yet to yield peaceful resolutions.
A senior Iranian source stated on Wednesday that there had been no progress in discussions to revive an interim deal agreed in June and to establish a time frame for its implementation. Shipping attacks continued to threaten regional stability. Attacks on vessels in the Strait of Hormuz and the Bab el-Mandeb Strait on Tuesday underscored risks to critical Middle Eastern oil and gas export routes.
Analysts at Haitong Futures noted that the safety situation for navigation in these waters had further deteriorated, forcing vessels to turn off their signals. This reduction in transparency made it more difficult for the market to track and assess actual supply levels, according to reporting cited by Reuters. Refined product markets faced mounting challenges from multiple disruptions.
The Iran war, Ukrainian attacks on Russian energy infrastructure, and China's restrictions on fuel exports have removed millions of barrels of refined products from global markets. These supply constraints have forced customers to seek alternative sources of supply. Oil price volatility has persisted since the Middle East crisis began, though current levels remain far below the $126 per barrel reached during an earlier phase of the conflict.
The combination of weakening demand signals and ongoing supply risks has created a complex market environment for energy traders and consumers.
Source: timesofindia.indiatimes.com