Oil prices fell more than $1 on Thursday as forecasters lowered their global oil demand projections for 2026 due to disruptions caused by the US-Israeli war on Iran, although supply constraints resulting from the conflict provided a floor for the market.
Brent futures dropped $1.29, or 1.5%, to $87.69 a barrel. US West Texas Intermediate (WTI) crude fell $1.30, or 1.6%, to $81.97.
The Organisation of the Petroleum Exporting Countries (OPEC) lowered its forecast for global oil demand growth in 2026 to 580,000 barrels per day in its monthly oil market report on Wednesday.
On the same day, the International Energy Agency (IEA) said it expects a 1.6 million bpd contraction in consumption this year.
