Texas oil drops 2.4% after IEA cuts crude demand forecast

Texas Intermediate (WTI) crude oil prices experienced a significant drop of 2.4%, closing at $81.25 per barrel on Thursday. This decline follows a revised forecast from the International Energy Agency (IEA) that anticipates lower global oil demand for the rest of the year.

The IEA's latest monthly report highlights the impact of renewed hostilities between the United States and Iran, which have disrupted maritime traffic through the critical Strait of Hormuz. This geopolitical tension has led the agency to reduce its projections for oil demand and products, citing the effect of new closures and the subsequent rise in crude prices on consumers.

Specifically, the IEA now predicts a decrease in global oil demand by 1.6 million barrels per day this year, an upward revision of 510,000 barrels from previous estimates. The agency also pointed out that the Middle East crisis has depleted global oil reserves by 69 million barrels in July, bringing them to their lowest level since April 2025, below 7,900 million barrels. The IEA emphasized the urgent need to reopen the strategic passage as quickly as possible.

The conflict has placed the Strait of Hormuz at the center of discord, as free passage has been interrupted since mid-July. This occurred after the collapse of a truce agreed upon by both countries for a definitive peace deal and the reimposition of a U.S. naval blockade on Iranian coasts and ports.