Oil prices drop as weaker demand outlook counters Middle East supply concerns

Oil prices dipped on Thursday, August 13, 2026, as investors assessed prospects for weaker global demand in 2026.

Brent futures slipped 11 cents, or 0.12%, to $88.87 a barrel by 0624 GMT, trimming gains over the prior six sessions.

U.S. West Texas Intermediate (WTI) crude fell ​16 cents, or 0.19%, to $83.11, after advancing over the past five sessions.

A ⁠senior market analyst at XS.com, Antonio Di Giacomo, said: “Buyers continue to dominate in the ​short term, following the recovery over the past several sessions.

“However, the speed of the advance could also trigger periods of volatility and profit-taking around ​current levels.”

Di Giacomo added that the market was trying to determine if potential supply constraints from Middle East disruptions would be sufficient to offset ​possible moderation in global consumption.

“This combination leaves WTI particularly sensitive to both geopolitical developments and new economic and energy data,” he said.

On Wednesday, a senior Iranian source said there had been no progress in talks to revive an interim deal agreed in June and define ​a timeframe to implement it.

Nigeria’s oil output falls 4% in July despite meeting OPEC quota

With no change in the prospect of reopening the Strait of Hormuz, the key driver ​of the past week’s higher prices, attention turned to the demand outlook after a surprise build in United States crude stocks and lower ‌consumption forecasts ⁠from OPEC and the International Energy Agency.

U.S. commercial crude oil inventories made their largest weekly gain since January 2023 as exports slumped, data from the Energy Information Administration showed on Wednesday.

Crude inventories rose by 17.4 million barrels to 424.4 million in the week ended August 7, their highest since June 5, the EIA said, versus Reuters poll expectations for ​a 1.4 million-barrel draw.

On the ​same day, the Organization of ⁠the Petroleum Exporting Countries (OPEC) lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day in its monthly oil market report.