FX.co ★ Brent Halts 6-Day Rally

Brent crude slipped below $88 a barrel on Thursday, snapping a six-session rally as investors turned their attention to weakening demand prospects and persistent disruptions around the Strait of Hormuz. The International Energy Agency cut its global oil demand forecast, warning that the protracted conflict in the Middle East and elevated prices are increasingly curbing consumption. The agency now projects a global supply shortfall of 1.8 million barrels per day this quarter—more than double its previous estimate—while production in July remained 6.3 million barrels per day below levels a year earlier. At the same time, US crude stockpiles jumped by 17.4 million barrels last week, the largest weekly build since January 2023. Diplomatic efforts by the US and Iran to end the conflict and fully reopen the Hormuz shipping lane have made little headway, with attacks on vessels continuing and rhetoric escalating. Even after Thursday’s pullback, Brent was still up nearly 5% for the week.