Oil stalled near one-week high as demand downgrades offset Hormuz deadlock

Global crude benchmarks edged higher on Wednesday to maintain one-week highs, as persistent maritime strikes and diplomatic deadlocks in Middle Eastern negotiations were largely counterbalanced by slashed global demand forecasts.

International Brent crude futures settled up 7 cents, or 0.08%, at $88.98 a barrel. US West Texas Intermediate (WTI) crude gained 7 cents, or 0.08%, to finish at $83.27 a barrel.

Pricing momentum was sustained by an enduring impasse in US-Iran ceasefire talks, with Tehran officials confirming no active discussions exist to extend the interim framework. Physical supply bottlenecks remained severe as daily transits through the Strait of Hormuz fell to eight vessels—sharply down from the pre-conflict baseline of 125 to 140 ships—following renewed vessel strikes in the chokepoint and the Bab el-Mandeb Strait.

However, upside momentum was capped after OPEC lowered its 2026 global demand growth forecast to 580,000 barrels per day (bpd). Concurrently, the International Energy Agency (IEA) revised its outlook to a 1.6 million bpd demand contraction, driven by Asian refiners cutting run rates amid acute crude feed shortages, even while projecting an overall market supply deficit of 1.27 million bpd.

Bearish headwinds were further compounded by US Energy Information Administration (EIA) data revealing a surprise domestic crude stockpile build—the largest weekly accumulation since January 2023—triggered by a sharp slump in US crude exports and elevated import volumes.

Written by: Aiman Haikal