Oil prices fell Thursday amid the ongoing supply disruption in the Middle East.
The drop comes after the International Energy Agency stated on Wednesday that global oil demand is expected to decline more than earlier predicted this year, due to the growing effects of the Strait of Hormuz closure.
“Renewed hostilities and maritime disruptions” are undermining efforts to boost global oil supply, the IEA said. Its latest report showed supply remained 6.3 million barrels a day lower year-on-year in July.
On Thursday morning, U.S. West Texas Intermediate futures declined by 2% to $81.61 per barrel, while Brent crude fell 1.8% to $87.40 per barrel.
Supply chains in the Middle East remain vulnerable, as recent attacks on vessels in the Gulf of Oman and the Red Sea underscore ongoing security concerns.
Although diplomatic efforts to reopen the Strait of Hormuz are underway, deadly attacks on vessels in the Gulf of Oman and the Red Sea have heightened concerns about supply disruptions. The ongoing war, now over five months old, continues to disrupt energy flows.
Crude oil has risen 8% over the past week.
By CEO NA Editorial Staff
