Oil drops as supply fears ease
Oil prices fell today, Thursday, due to reduced fears of supply disruptions in the Middle East, as Saudi Arabia’s exports through the Bab el-Mandeb Strait returned to 1.5 million barrels per day after a shipping crisis and the impact of Houthi attacks. Meanwhile, the International Energy Agency lowered its global oil consumption forecast for 2026 by 2.6 million barrels per day, exerting downward pressure on prices as rising demand diminishes due to declining economic outlooks. Despite the resumption of some oil exports, the market continues to face shortages in inventories and geopolitical tensions, with ongoing shipping disruptions and crude stockpiles at their lowest levels in a decade, in addition to Iran's escalating attacks on maritime navigation. There are also expectations that China will significantly replenish its reserves starting in November.
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