Crude oil dips below $81 on demand concerns and Strait disruption
Crude oil fell below $81 a barrel on Thursday after five straight gains as attention turns to weaker demand prospects, ongoing disruption around the Strait of Hormuz, and a 17.4 million-barrel jump in US inventories.
Crude oil fell below $81 a barrel on Thursday, after five consecutive sessions of gains, as investors shifted attention toward weakening demand prospects and continued disruption around the Strait of Hormuz.
Traders are closely monitoring how much oil is moving through the key waterway, as diplomatic efforts to end the Iran war and restore normal shipping remain stalled.
Meanwhile, major producers including Saudi Arabia and the UAE are seeking alternative ways to maintain exports, with some vessels reportedly switching off transponders while navigating the strait.
The International Energy Agency lowered its global oil demand outlook, warning that prolonged conflict and elevated prices are increasingly weighing on consumption.
The agency estimates the global market could face a supply deficit of 1.8 million barrels per day this quarter, more than twice its previous forecast.
US crude inventories also surged by 17.4 million barrels last week.