Crude oil drops below $82 on demand concerns, Iran shipping risks
Crude oil falls below $82 a barrel after five straight gains as the IEA warns demand prospects are weakening and US inventories surge by 17.4 million barrels.
Crude oil fell below $82 a barrel on Thursday, after five consecutive sessions of gains, as investors shifted their focus toward weakening demand prospects and continued disruption around the Strait of Hormuz.
The International Energy Agency lowered its global oil demand outlook, warning that the prolonged Middle East conflict and higher prices are increasingly weighing on consumption.
The agency estimates the global oil market could face a supply shortfall of 1.8 million barrels a day this quarter, more than twice its previous forecast, while supply remained 6.3 million barrels a day below year-earlier levels in July.
Meanwhile, US crude inventories surged by 17.4 million barrels last week, their largest weekly increase since January 2023.
Diplomatic efforts between the US and Iran to end the conflict and reopen Hormuz have made little progress, with attacks on shipping continuing and rhetoric intensifying.
Despite Thursday’s decline, oil remained nearly 5% higher for the week.