Brent Crude Falls to $87 on Demand Decline Outlook; WTI Drops 2.43%

[Financial News] Global oil prices fell more than 2% on expectations that worldwide oil demand will decline more sharply than previously forecast this year.
On the 13th local time, Brent Crude Oil for October delivery closed at $87.07 per barrel on the Intercontinental Exchange Futures Exchange, down 2.15% from the previous session. West Texas Intermediate (WTI) for September delivery on the New York Mercantile Exchange (NYMEX) fell 2.43% to settle at $81.25 per barrel.
Prices were pushed lower after the International Energy Agency (IEA) further cut its outlook for global oil demand.
In its August Oil Market Report released on the 12th, the IEA projected that global oil demand would fall by 1.6 million barrels per day this year. That was 510,000 barrels per day more than its previous forecast.
Analysts say higher fuel prices, caused by disruptions to crude shipments through the Strait of Hormuz, are weighing on oil consumption. Supply concerns from the Middle East have lifted prices, but those higher prices are now feeding back into weaker demand, adding downward pressure on the crude market.
Still, further declines were limited as geopolitical tensions in the Middle East continued. In recent days, attacks targeting ships have continued in the Gulf of Oman and the Red Sea. Yemen's Iran-backed Houthi rebels recently claimed they had attacked Saudi Arabian oil refineries with drones.
Market participants expect weaker global oil demand and supply risks from the Middle East to drive international oil prices for the time being. If additional disruptions to crude transport through the Strait of Hormuz occur, prices could rise again.

[email protected] Kim Kyung-min Reporter