Oil falls after OPEC cuts 2026 demand growth forecast
Business
Oil prices took a dip on Wednesday, with Brent crude now at $88.42 per barrel and West Texas Intermediate at $82.95.
The drop comes as OPEC lowered its 2026 demand growth forecast and US crude inventories rose sharply last week, both signs that the world might not need as much oil as expected.
IEA warns 1.27 million bpd shortfall
The International Energy Agency is warning about a big supply drop this year, predicting an annual deficit of 1.27 million barrels per day.
Meanwhile, attacks on ships in the Strait of Hormuz and Bab el-Mandeb have made key oil routes riskier, with shipping traffic through Hormuz plunging from over 125 vessels a day to just eight this week.
All this adds up to some serious uncertainty for global oil supplies right now.