Global oil prices moved lower on Thursday after gaining in recent sessions, as markets reacted to weaker forecasts for oil demand in 2026. The latest decline comes at a time when geopolitical tensions and concerns over energy supplies continue to keep the international oil market highly volatile.
Brent crude, the global benchmark, dropped by $1.29 to $87.69 a barrel. The decline followed several sessions of gains, showing how quickly sentiment in the oil market can change as traders assess demand expectations alongside developments in the Middle East.
U.S. West Texas Intermediate, commonly known as WTI, also fell during the latest trading session. The American crude benchmark declined by $1.30 to $81.97 per barrel, adding to pressure across the wider energy market.
One of the main reasons behind the latest weakness in oil prices is a downgrade in expectations for global demand. OPEC has reduced its forecast for 2026 oil demand growth to 580,000 barrels per day, marking its fourth consecutive downward revision.
Geopolitical tensions remain another major factor for oil traders. The continuing conflict involving Iran has disrupted energy supplies and shipping routes, while uncertainty around the Strait of Hormuz and Bab el-Mandeb has added to concerns about the movement of crude and petroleum products.
There is also a growing gap between forecasts from major energy organizations. While OPEC still expects global oil demand to increase in 2026, the International Energy Agency has taken a much more bearish view and expects global consumption to decline by around 1.6 million barrels per day.
