Oil falls more than 3% on weaker global demand outlook and US crude buildup

Supply disruptions in the Middle East and the Black Sea region continued to support oil prices, with the U.S. and Iran making competing claims over the Strait of Hormuz. The strait is "under Iran's control and management," the recently appointed head of Iran's Basij paramilitary unit said on Thursday, a day after U.S. President Donald Trump said the United States had ["total control"](reuters://realtime/verb=NewsStory/ric=nFWN44914S) of the strategic waterway. The market was also evaluating the actual scale of oil moving through the Strait after U.S. Energy Secretary Chris Wright said an average of 9 million bpd was transiting the waterway each week, while total flows, including volumes transported through updated pipelines and export infrastructure, were averaging 15 million bpd. Kpler shipping data, however, showed that vessel crossings through the strait excluding container ships dropped to five on Wednesday, their lowest in three weeks. "Conflicting stories continue to drive the narrative as to who controls the Strait of Hormuz and just how many ships are making passage," said Tim Snyder, chief economist at Matador Economics. Meanwhile, OPEC lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day in its monthly oil market report. The International Energy Agency said it expected a contraction of 1.6 million bpd in consumption this year, versus a forecast of 1 million bpd last month, with demand curtailed by higher prices and restricted supply due to the U.S.-Israeli war with Iran. Adding to market tightness, Russia's seaborne oil product exports in July dropped by 33.3% on a daily basis from June and 54.7% from the same month a year ago to 3.93 million metric tons after Ukrainian drone attacks led to unplanned maintenance at key domestic refineries, industry sources said and Reuters calculations show. In the Russian city of Orsk, an oil refinery that was hit by a Ukrainian drone strike two days ago has been forced to shut down completely, and repairs could take up to six months, the regional governor said on Thursday. And in the Dutch port of Rotterdam, a blast during maintenance work at a storage facility for petroleum products killed one person and wounded several others on Thursday. NEW YORK, Aug. 13 (Reuters) - Oil prices fell more than 3% on Thursday as investors focused on signs of weaker global demand and rising U.S. crude stocks, though prices drew some support from stalled talks over the blockaded Strait of Hormuz. Brent futures LCOc1 were down $1.93, or 2.2%, at $87.05 a barrel at 11:01 a.m. ET or 1601 GMT, trimming gains accumulated over the previous six sessions. U.S. West Texas Intermediate (WTI) crude CLc1 fell $1.82, or 2.2%, to $81.45 after advancing over the past five sessions. Earlier in the session, Brent slid as much as 3.5%, while WTI fell by as much as 3.8%. The large crude stocks build in the U.S. last week is a headwind for prices, said UBS analyst Giovanni Staunovo, adding that the downside should be limited as long as flows through the Strait of Hormuz remain limited. U.S. commercial crude oil inventories made their largest weekly gain since January 2023 as exports slumped, data from the Energy Information Administration showed on Wednesday. Crude inventories rose by 17.4 million barrels to 424.4 million in the week ended August 7, their highest since June 5, the EIA said. A Reuters poll of analysts had predicted a draw of 1.4 million barrels.

Oil falls more than 3% on weaker global demand outlook and US crude buildup

Competing claims over Hormuz

IEA and OPEC cut demand forecasts

Russia and Rotterdam incidents add to market backdrop

Oil prices fall on demand concerns and U.S. crude buildup

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