Global Finance News
13 Aug 2026, 10:07
Brent Crude Falls 1.4% as Weaker Demand Outlook and U.S. Inventory Build Pressure Oil Prices
Brent crude oil fell sharply Thursday, with futures dropping about 1.4% to $87.76 per barrel as concerns over weakening global oil demand outweighed continuing geopolitical risks in the Middle East.
Large U.S. Inventory Build Adds Pressure
Another bearish factor came from the United States, where crude inventories unexpectedly surged by 17.4 million barrels, the largest weekly increase since January 2023. The substantial build, driven partly by lower exports, reinforced concerns that the physical market may be becoming better supplied.
Brent consequently moved down from around $89 earlier in the session and briefly approached $87.50 before recovering slightly.
Iran Risks Continue to Limit the Downside
Geopolitical conditions remain an important counterweight. The continuing U.S.-Iran standoff and uncertainty surrounding the Strait of Hormuz maintain a significant risk premium in crude prices, particularly given the importance of the waterway to global energy flows.
For now, however, demand concerns and rising U.S. inventories are dominating trading. Brent’s ability to hold above the $87-$88 area may depend on whether Middle East supply risks intensify again or incoming inventory and demand data provide evidence of tighter market conditions.
Brent crude oil fell sharply Thursday, with futures dropping about 1.4% to $87.76 per barrel as concerns over weakening global oil demand outweighed continuing geopolitical risks in the Middle East.
Large U.S. Inventory Build Adds Pressure
Another bearish factor came from the United States, where crude inventories unexpectedly surged by 17.4 million barrels, the largest weekly increase since January 2023. The substantial build, driven partly by lower exports, reinforced concerns that the physical market may be becoming better supplied.
Brent consequently moved down from around $89 earlier in the session and briefly approached $87.50 before recovering slightly.
Iran Risks Continue to Limit the Downside
Geopolitical conditions remain an important counterweight. The continuing U.S.-Iran standoff and uncertainty surrounding the Strait of Hormuz maintain a significant risk premium in crude prices, particularly given the importance of the waterway to global energy flows.
For now, however, demand concerns and rising U.S. inventories are dominating trading. Brent’s ability to hold above the $87-$88 area may depend on whether Middle East supply risks intensify again or incoming inventory and demand data provide evidence of tighter market conditions.
