Now Reading: Oil slips below $88 as demand fears trump Iran war risk
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Oil slips below $88 as demand fears trump Iran war risk
Brent crude fell 1.5% to $87.69 a barrel on Thursday, while US WTI dropped 1.6% to $81.97, after analysts and agencies cut global oil demand forecasts for 2026. Opec reduced its demand…
The Story in Brief
Brent crude fell 1.5% to $87.69 a barrel on Thursday, while US WTI dropped 1.6% to $81.97, after analysts and agencies cut global oil demand forecasts for 2026. Opec reduced its demand growth estimate to 5.8 lakh barrels per day, and the IEA lowered its consumption outlook, citing disruptions from the US-Iran conflict and higher prices.
Talks between Washington and Tehran remain deadlocked, with Pakistan saying the peace process has stalled. Attacks on shipping in the Strait of Hormuz and Bab el-Mandeb Strait on Tuesday highlighted supply risks. US crude inventories rose by 1.74 crore barrels last week, the biggest weekly jump since January 2023, adding to price pressure.
The Indian Opinion
The media paints every dip in oil as a sign the Iran war panic is over. Thursday's fall was driven by demand forecasts, not diplomacy. Opec and the IEA both cut their 2026 consumption estimates. That is the real story, not the deadlock in US-Iran talks. Watch whether Brent holds above $85 in the coming weeks. If it does, supply fear is winning over demand reality.
Sources (2): livemint.com, timesofindia.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
