Oil prices fell on Thursday. Investors are primarily reacting to expectations of weaker global demand this year and rising oil inventories in the United States. However, the decline in prices remains limited due to uncertainty surrounding the Strait of Hormuz and ongoing supply disruptions.
Oil prices on world markets fell on Thursday after investors began to factor in the risk of a slowdown in global demand. Negative sentiment in the market was also supported by data indicating an increase in oil inventories in the United States. The market is therefore experiencing some correction after a series of rising sessions. Brent crude futures fell 91 cents, or approximately one percent, to $88.07 per barrel on Thursday at 08:00 GMT. Brent thus gave up some of the gains it had accumulated during the previous six trading sessions.
U.S. West Texas Intermediate (WTI) crude oil weakened even more sharply. Its price fell by 96 cents, which represents 1.2 percent, to $82.31 per barrel. WTI had risen for the previous five consecutive trading sessions. One of the main factors affecting prices is the development of inventories in the United States. Higher inventories can signal weaker consumption or sufficient supplies in the U.S. market. This is an important indicator for investors because the United States is one of the world's largest consumers of oil, and developments in its inventories can affect expectations about global demand.
On the other hand, the decline in prices is being countered by geopolitical risks. The situation surrounding the Strait of Hormuz continues to attract the attention of traders, as it represents one of the world's most important routes for transporting oil and petroleum products. Therefore, a lack of progress in negotiations to reopen it keeps a risk premium on the market. In addition, ongoing supply disruptions are also supporting prices.
Investors are therefore caught between two conflicting forces – expectations of weaker demand and rising inventories on one hand, and concerns about potential supply restrictions on the other. Further developments in oil prices will therefore depend not only on macroeconomic data and consumption in major economies, but also on the geopolitical situation and the market's ability to ensure smooth supplies.
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