Oil Drops Over 2%; US Stockpile Surge Weighs on Prices
Oil prices closed down more than 2% in Thursday's trading (Aug 13), reversing a rally that had lasted nearly a week. Brent fell US$1.91, or 2.15%, to US$87.07 per barrel after gaining for six sessions, while WTI weakened by US$2.02, or 2.4%, to US$81.25 following five consecutive sessions of gains.
Downward pressure briefly pushed both benchmarks down by more than 3.5% during the session. However, some losses were pared after reports emerged that the Houthi group in Yemen had attacked a Saudi Aramco refinery facility using drones, reigniting concerns about supply disruptions in an already tight global market.
The primary factor weighing on prices was a surge in US crude oil inventories. Data from the Energy Information Administration showed crude stocks rising by 17.4 million barrels to 424.4 million barrels for the week ending August 7—the largest weekly increase since January 2023.
The global demand outlook is also weakening. OPEC cut its forecast for global oil demand growth for 2026 to just 580,000 barrels per day, indicating that consumption is not expected to be as strong as previously estimated.
The International Energy Agency (IEA) even projects that global oil consumption this year will fall by approximately 1.6 million barrels per day, a steeper decline than its previous forecast of 1 million barrels. High energy prices and economic disruptions stemming from the US-Israel conflict with Iran are factors constraining demand.
Newsmaker Analysis: The oil price correction indicates that the market is shifting its focus toward weak demand and surging US stockpiles following a sharp rally over several sessions. However, geopolitical risks continue to limit the downside. As long as Middle East conflicts and threats to energy infrastructure remain elevated, Brent prices could remain volatile within the US$85–US$90 range, even as demand fundamentals begin to weaken.
Source: Newsmaker.id
