breaking

Oil Prices Drift as OPEC Cuts 2026 Demand Forecast Amid Strait of Hormuz Disruptions

Crude markets traded without clear direction Thursday as OPEC revised its 2026 demand growth forecast downward to 1.4 million bpd, while the International Energy Agency warned of intensifying price volatility ahead. Brent and WTI futures fluctuated near unchanged levels. The IEA said supply losses from the Iran conflict now exceed 14 million bpd, representing more than one billion barrels in cumulative losses since late February. The Strait of Hormuz disruptions are draining global inventories at record rates, the agency stated. Peak summer demand and ongoing geopolitical risks surrounding potential Middle East infrastructure damage could amplify volatility, analysts cautioned. OPEC's latest monthly update marks the final report including UAE data before the country's May 1 cartel exit. Traders are also monitoring U.S.-China diplomatic developments, given Beijing's substantial exposure to Hormuz-routed oil flows.