Oil prices ticked down despite a lack of progress on peace talks between Washington and Tehran, as the industry’s outlook for global demand weakened and the US showed signs of rebuilding its stocks.
The International Energy Agency and OPEC both slashed their demand forecasts, much of which is being driven by the “ongoing structural decline” of gasoline vehicles in China as they are replaced by EVs, the IEA said.
The IEA also predicted that total oil supply this year would be about 4% lower than in 2025 because of disruptions in the Strait of Hormuz. Still, US commercial crude oil inventories, which don’t include the Strategic Petroleum Reserve, posted their largest weekly gain since 2023 as exports and refinery runs ticked down. Meanwhile, environmental watchdogs are warning of a “nightmare scenario” as a huge oil spill begins to hit Oman’s shoreline.