Crude oil prices settled sharply lower on Thursday as concerns over weakening global demand and a large build in U.S. crude inventories outweighed continued geopolitical risks across the Middle East and Black Sea. Brent crude settled down $1.91, or 2.15%, at $87.07 per barrel, ending a six-session winning streak, while WTI declined $2.02, or 2.40%, to settle at $81.25 per barrel after five consecutive sessions of gains.
U.S. inventory data put significant pressure on prices after the Energy Information Administration reported that commercial crude inventories increased by 17.4 million barrels to 424.4 million barrels for the week ending August 7. The increase was the largest weekly build since January 2023 and came as U.S. crude exports declined, pushing inventories to their highest level since June 5.
Expectations for weaker global oil demand also weighed on the market. OPEC lowered its 2026 global oil demand growth forecast to 580,000 barrels per day, while the International Energy Agency projected that global consumption could contract by 1.6 million barrels per day this year as elevated prices and supply disruptions weigh on demand.
Geopolitical risks continued to provide support and limited the day’s losses. Yemen’s Houthi forces reported another attack on Saudi Aramco’s Jazan refinery, while uncertainty persisted over control of and access through the Strait of Hormuz. Vessel traffic through the critical waterway remains significantly below pre-conflict levels, maintaining concerns over the availability of Middle Eastern crude and refined products.
Additional supply disruptions were reported in Russia, where Ukrainian drone attacks have forced unplanned refinery maintenance and contributed to a sharp decline in Russian seaborne oil-product exports. The latest attack on the Orsk refinery has resulted in a shutdown that could take several months to repair.
Despite continued geopolitical supply risks, the combination of a substantial U.S. inventory build and increasingly bearish demand forecasts shifted the market’s focus toward weakening fundamentals, pulling crude prices lower after a week of gains.