Oil rises as IEA flags greater volatility ahead, OPEC cuts demand forecast
Brent and WTI prices rose after the International Energy Agency warned of greater volatility ahead and OPEC trimmed its 2026 demand forecast, CNBC reported. Tensions around the Strait of Hormuz and the Trump-Xi summit continue to dominate price action.
Brent and U.S. WTI crude futures climbed after the International Energy Agency said it expects sharper price swings through year-end. According to CNBC, OPEC trimmed its 2026 global oil-demand growth forecast in its monthly report, citing the impact of the Iran war on consumption.
The IEA reiterated that geopolitical disruptions have 'raised uncertainty' on the supply side and that global output fell by 1.8 million barrels a day in April. The defensive mission for the Strait of Hormuz, including UK jets and a warship pledged this week, is keeping the short-term risk premium alive. Brent continues to trade above the $90 mark.
Traders are watching today's Trump-Xi summit in Beijing for any diplomatic shift on Iran. On the demand side, China's signals on AI- and industry-driven consumption together with the latest hot U.S. wholesale inflation data have left expectations finely balanced.
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