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Oil prices steady as 2026 demand forecasts slide and ship attacks persist
Brent was down 0.0% and WTI up 0.1% by midday after OPEC cut its 2026 demand growth outlook to 580,000 barrels per day, while inventories rose on weak exports and higher imports.
Oil prices were little changed in volatile trade on Wednesday as investors weighed weaker outlooks for 2026 global demand against continued disruptions to shipping in the Middle East, Reuters reported. Brent futures were down 3 cents at $88.88 a barrel by 12:10 p.m. ET, while U.S. West Texas Intermediate crude rose 11 cents, or 0.13%, to $83.31.
The Organisation of the Petroleum Exporting Countries lowered its forecast for world oil demand growth in 2026 to 580,000 barrels per day, according to its monthly oil market report. The International Energy Agency also cut its 2026 demand projections and now expects a 1.6 million barrels per day contraction this year, while projecting a 4.3 million barrels per day supply drop and an overall 2026 deficit of about 1.27 million barrels per day.
Analysts pointed to demand concerns, with Energy Outlook Advisors saying the main takeaway is that demand has declined significantly, Reuters noted. The note also cautioned that demand figures can be influenced by inventory changes, which may not match actual consumption at a given time.
In the United States, crude stocks posted a surprise build and their largest weekly gain since January 2023, the Energy Information Administration said. Analysts attributed the increase mainly to unusually weak crude exports and a surge in imports, even as prices earlier rose after a senior Iranian source said there were no talks to extend a ceasefire.
Separately, Reuters said the U.S. and Iran-aligned Houthis reported attacks on shipping in the Strait of Hormuz and the Bab el-Mandeb Strait on Tuesday, two key routes for Middle Eastern oil and gas. Shipping data showed vessels transiting Hormuz fell to a one-week low of eight on Tuesday.
Latest closeWTI crude $83.42 ▲1.6%|Brent $89.26 ▲1.8%