Oil Prices Slide as Massive Inventory Surprise Catches Markets Off Guard

TLDR

• Brent crude dropped to $88.07 and WTI fell to $82.31 on Thursday
• US crude inventories rose by 17.4 million barrels, the biggest weekly gain since January 2023
• OPEC cut its 2026 oil demand growth forecast to 580,000 barrels per day
• The IEA now expects a 1.6 million bpd drop in oil demand this year, revised down from a 1 million bpd growth forecast
• Strait of Hormuz vessel crossings dropped to a three-week low, keeping supply disruption concerns alive

Oil prices fell on Thursday as a large build in US crude inventories and downgraded demand forecasts from major energy bodies weighed on markets. Supply disruptions in the Middle East provided some support but were not enough to stop the decline.

Brent futures dropped 91 cents, or 1%, to $88.07 a barrel by 0800 GMT. WTI crude fell 96 cents, or 1.2%, to $82.31. Both contracts had trimmed gains built up over the previous five to six sessions.

US Crude Inventories Post Largest Weekly Gain Since 2023

The Energy Information Administration reported that US commercial crude oil inventories rose by 17.4 million barrels in the week ended August 7. That brought total stocks to 424.4 million barrels, their highest level since June 5.

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