Oil prices faced downward pressure on Thursday as traders reacted to OPEC’s revised demand outlook and the International Energy Agency’s warning of increased volatility. Brent crude futures for July dipped 0.21% to $105.42 per barrel, while U.S. West Texas Intermediate futures for June fell 0.16% to $100.87. OPEC lowered its demand growth forecast for 2026 to 1.2 million barrels per day, attributing part of the decline to significant production losses amid ongoing geopolitical tensions, particularly the Iran war.
The implications for the financial markets are substantial, as OPEC’s production has decreased by 1.7 million bpd in April alone, contributing to a cumulative drop of over 9.7 million bpd since late February. The IEA noted that supply disruptions in the Strait of Hormuz are depleting global inventories at an unprecedented rate, raising concerns about price stability as summer demand peaks.
Market professionals should prepare for heightened volatility in oil prices, particularly as geopolitical developments continue to unfold and impact supply dynamics. The interplay between U.S.-China relations and Middle Eastern conflicts will be critical to watch in the coming weeks.
Source: cnbc.com