Oil prices decline as IEA forecasts a decline in demand

Aug. 13 (UPI) — The price of crude oil was on the decline on Thursday after the International Energy Agency projected a decline in demand later this year.

Brent crude oil prices, the international benchmark, fell by 45 cents to $88.53 per barrel early Thursday. West Texas Intermediate futures, the U.S. benchmark, were down 54 cents to $82.73.

IEA published its August 2026 oil market report on Wednesday forecasting a decline of 1.6 million barrels per day in oil demand this year. The decline is about 510,000 barrels per day sharper than what it projected in July.

IEA noted that crude oil prices hit a two-month high in July following peace talks between the United States and Iran falling apart. It said oil prices “traded in an unusually wide range” of about $40 per barrel.

“Expectations of diplomatic progress had triggered steep price declines in June and early July, but a return to hostilities led prices to spike as high as $105/bbl on 23 July,” the report reads.

The Organization of the Petroleum Exporting Countries also published its August report on Wednesday, forecasting that oil demand will increase by about 600,000 barrels per day. However this figure is a downward revision from its July estimate of about 780,000 barrels per day in growing demand.

OPEC’s forecast for 2027 future oil calls for about 2.2 million barrels per day in growth.

The United States increased its crude oil stockpile by 17.4 million barrels last week, U.S. Energy Information Administration data from Wednesday showed. This is another factor in falling oil prices.