Atilla 2 oil tanker boat sails through the waters of Qeshm Island in the Strait of Hormuz, Iran, April 28, 2026.
Asghar Besharati | Getty Images
Oil prices rose on Thursday as the Organization of the Petroleum Exporting Countries (OPEC) cut its demand forecast for this year and the International Energy Agency warned of looming increased volatility.
International benchmark Brent crude oil futures for July contract rose 0.34% to $105.99 per barrel, while U.S. West Texas Intermediate crude oil futures for June contract rose 0.43% to $101.45 per barrel.
In its latest monthly update, OPEC lowered its demand growth forecast for 2026 to about 1.2 million barrels per day from the previous 1.4 million barrels per day. OPEC production fell by 1.7 million barrels per day in April, the equivalent of 9.7 million barrels per day, a drop of more than 30% since the start of the Iran war in late February.
OPEC’s latest update is expected to be the last to include data from the United Arab Emirates, which withdrew from the cartel on May 1.
The International Energy Agency on Wednesday also highlighted the impact of the Iran war on oil supplies. “More than 10 weeks into the Middle East war, global oil stocks are depleting at a record pace as supply losses from the Strait of Hormuz increase,” the IEA said.
With supply cuts of more than 14 million barrels per day, overall losses from Gulf producers are now more than 1 billion barrels, the IEA said, adding that price volatility is likely to become even greater as peak summer demand approaches.
ING analysts said: “The duration of high fuel prices remains a subject of intense debate and is closely linked to ongoing geopolitical developments surrounding the closure of the Strait of Hormuz and the potential damage to oil and gas infrastructure in the Middle East from further conflict.”
The meeting between US President Donald Trump and Chinese President Xi Jinping is also closely watched by traders.
Former U.S. Commerce Secretary Carlos Gutierrez told CNBC’s “Squawk Box Asia” on Wednesday that China wants the conflict to end because it is the largest customer for oil flowing through the Strait of Hormuz. “President Xi wants this war to end as much as President Trump does.”
—CNBC’s Spencer Kimball contributed to this report.
Correction: This story has been updated to correct the date to Thursday.
