Global Oil prices eased as weaker 2026 demand projections from OPEC and the International Energy Agency (IEA) outweighed persistent supply risks linked to the prolonged disruption in the Strait of Hormuz.
As at the time of writing 08:15 am (WAT) Brent crude fell 0.48 per cent to $88.55 a barrel, while WTI crude declined 0.53 per cent to $82.83.
The decline came as both OPEC and the IEA lowered their outlooks for global oil demand in 2026, reflecting concerns that prolonged disruption around the Strait of Hormuz and elevated prices could weaken consumption.
The IEA now expects oil demand to fall by 1.6 million barrels per day (bpd) in 2026, cutting its previous July projection by 510,000 bpd. The agency had earlier assumed that oil flows through the Strait would gradually recover.
However, renewed hostilities at the end of July and the lack of progress in US-Iran negotiations have forced the agency to anticipate a deeper demand slowdown as higher energy prices weigh on economic activity.
OPEC also reduced its 2026 demand outlook, although it still expects global oil consumption to grow. The cartel now projects demand growth of 580,000 bpd, down from its earlier estimate of 780,000 bpd.
Another major pressure on prices came from the United States, where government data showed a much larger-than-expected build in crude inventories. The Energy Information Administration reported that commercial crude stocks increased by 17.4 million barrels in the week ended August 7.
The increase lifted US commercial crude inventories to 424.4 million barrels, leaving stockpiles only about two per cent below the five-year average for this period. The build was driven largely by a 1.14 million bpd weekly increase in crude imports, while exports fell by 627,000 bpd.
For Nigeria's downstream market, the softer crude benchmarks offer some relief on replacement costs, but the impact may be moderated by the continuing uncertainty around the Strait of Hormuz, freight costs, exchange-rate movements and the availability of refined products. Industry players are likely to continue watching the direction of crude prices and shipping conditions closely as these factors feed into local product pricing.