Global crude prices declined as weaker expectations for 2026 oil consumption outweighed concerns over supply disruptions linked to the Middle East conflict.
Global oil prices fell by more than $1 a barrel on Thursday as investors focused on a weaker outlook for oil demand in 2026, overshadowing continuing supply concerns linked to tensions in the Middle East.
Brent crude futures fell $1.29, or about 1.5%, to $87.69 a barrel, while US West Texas Intermediate (WTI) crude declined $1.30, or around 1.6%, to $81.97.
The latest pressure on prices came after the Organisation of the Petroleum Exporting Countries (OPEC) reduced its forecast for global oil demand growth in 2026 to 580,000 barrels per day. It was the fourth consecutive reduction in the group’s demand-growth projection.
The revised outlook has raised concerns among traders about the strength of global fuel consumption next year. A slower pace of economic activity could reduce demand for crude, potentially limiting the upward pressure created by supply disruptions.
At the same time, geopolitical risks remain a major factor in the oil market. The conflict involving Iran, the United States and Israel has raised concerns about energy supplies and shipping routes in the Middle East. Any disruption to oil production, exports or major maritime routes could quickly affect global crude prices.
However, the economic and logistical impact of the conflict could also weaken fuel consumption, creating a counterbalance to supply concerns.
For investors, the oil market is increasingly caught between these competing forces. Supply risks could support prices, while weaker demand expectations could keep them under pressure.
About The Author
