Oil prices slide more than $1 a barrel as 2026 demand outlook weakens

Crude oil prices fell by more than a dollar a barrel on Tuesday after leading forecasters cut their estimates for global demand growth. Brent crude dropped 1.5% to $87.69 a barrel, while U.S. West Texas Intermediate (WTI) declined 1.6% to $81.97, according to market data. The Organization of the Petroleum Exporting Countries (OPEC) lowered its forecast for global oil demand growth in 2026 to 580,000 barrels per day. The International Energy Agency projected a sharper contraction, estimating that global consumption would shrink by roughly 1.6 million barrels . Adding to the pressure, U.S. crude inventories rose by 17.4 million barrels to 424.4 million barrels last week, the largest weekly increase since January 2023, official data showed. The build reinforced concerns about weakening demand in the world's largest economy. On the supply side, shipping risks through the Strait of Hormuz and the Bab el-Mandeb strait, along with a slowdown in U.S.–Iran talks, kept supply concerns in play and limited the scale of the price decline. Traders were also watching for further guidance from major producers on output policy.