FX.co ★ Crude Oil Pulls Back on Thursday

Crude oil slipped below $82 a barrel on Thursday, breaking a five-session winning streak, as investors shifted their attention to softening demand prospects and ongoing disruptions around the Strait of Hormuz. The International Energy Agency cut its global oil demand forecast, warning that the prolonged conflict in the Middle East and elevated prices are increasingly curbing consumption. The agency now estimates the global oil market could face a supply shortfall of 1.8 million barrels per day this quarter—more than double its previous projection—while July supply remained 6.3 million barrels per day below year-earlier levels.

At the same time, US crude inventories jumped by 17.4 million barrels last week, the largest weekly build since January 2023. Diplomatic efforts between the US and Iran to resolve the conflict and restore safe passage through Hormuz have made limited headway, with attacks on shipping continuing and rhetoric escalating. Despite Thursday’s pullback, oil prices were still up nearly 5% for the week.