Oil prices steady after reduced 2026 global demand projections

Oil prices steadied in volatile trading on Wednesday, having earlier moved $1 higher, after forecasters cut projections for 2026 global oil demand, while attacks on ships in the Middle East continued as talks to end the Iran war hit an impasse.

Brent futures were down three cents at $88.88 a barrel by 12:10 ET (16:10 GMT). US West Texas Intermediate crude rose 11 cents, or 0.13 per cent, to $83.31.

The Organisation of the Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day, it said in its monthly oil market report.

Rival forecaster the International Energy Agency, meanwhile, slashed its 2026 demand projections and now expects a 1.6 million bpd contraction this year. However, the Paris-based agency is also predicting a 4.3 million bpd drop in supply this year, and an overall 2026 deficit of around 1.27 million bpd.