Crude Oil Prices Fall as Lower Demand Forecasts Offset Middle East Supply Risks | August 13, 2026

Oil prices fell by more than $1 on Thursday, August 13, 2026, as lower global demand forecasts for 2026 and a sharp increase in US crude inventories weighed on the market, as per news reports. Supply concerns linked to the conflict involving the US, Israel and Iran continued to provide support to prices. 

Oil Prices Decline as Demand Forecasts Are Cut 

Brent crude futures fell $1.29, or 1.5%, to $87.69 a barrel by 0100 GMT. US West Texas Intermediate (WTI) crude declined $1.30, or 1.6%, to $81.97. 

The Organisation of Petroleum Exporting Countries lowered its forecast for global oil demand growth in 2026 to 580,000 barrels per day in its latest monthly oil market report. 

The International Energy Agency also revised its outlook, forecasting a 1.6 million barrels per day contraction in consumption this year, compared with its previous estimate of a 1 million barrels per day decline. The agency cited restricted fuel supplies and higher prices linked to the US-Israeli war on Iran. 

US Crude Inventories Rise Sharply 

Oil prices also came under pressure after US commercial crude inventories recorded their largest weekly increase since January 2023. The Energy Information Administration said crude inventories rose by 17.4 million barrels to 424.4 million barrels in the week ended August 7. 

The increase was significantly larger than expectations for a 1.4 million-barrel draw. Inventories reached their highest level since June 5, while weaker exports contributed to the build-up. 

US-Iran Talks Remain Deadlocked 

Despite the pressure from weaker demand expectations and higher US inventories, tensions in the Middle East continue to support oil prices. Talks between Iran and the US aimed at ending the war in the Gulf remain deadlocked. 

Read More: Marksans Pharma Share Price Gains Over 13% After Q1 FY27 Earnings Results: Total Income Up 38.5% YoY! 

Shipping Risks Threaten Regional Oil Supplies 

Attacks on shipping in the Strait of Hormuz and the Bab el-Mandeb Strait on Tuesday have highlighted continuing risks to oil and gas exports from the Middle East. Both waterways are important routes for regional energy shipments. 

Concerns over navigation have increased as vessels reportedly turn off their signals, making shipping activity less transparent and complicating efforts to assess actual supply levels. 

Conclusion 

Oil prices remain influenced by opposing factors, with lower demand expectations and rising US inventories weighing on prices, while tensions around key Middle Eastern shipping routes continue to raise concerns over regional supply. 

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