Oil prices retreat after OPEC and IEA lower 2026 demand forecasts, overshadowing Middle East supply risks.
Brent Crude fell 0.5% to $88.56 in Asian trading Thursday, retreating from a Wednesday high above $89, as OPEC and the International Energy Agency slashed 2026 oil demand outlooks. WTI Crude dropped 0.60% to $82.77, extending losses after a bearish EIA inventory report.
Both agencies revised downward their 2026 demand projections earlier this week, citing weaker economic growth expectations and shifting energy policies. The cuts contrast with recent geopolitical tensions, including stalled U.S.-Iran talks and Middle East shipping risks, which had supported prices.
The pullback reflects investor focus on long-term demand fundamentals over near-term supply disruptions, with markets paring back earlier gains.