Oil prices fall on lower demand forecasts amid US-Iran negotiation deadlock

Oil prices have declined as recent forecasts indicate lower global demand, according to a Reuters report, despite ongoing deadlock in US-Iran negotiations. The International Energy Agency (IEA) and OPEC have both revised their demand growth forecasts downward, with OPEC cutting its 2026 global oil demand growth forecast by 200,000 barrels per day. These developments appear to have impacted market sentiment regarding the likelihood of crude oil reaching a new all-time high within the year. Current market pricing reflects this shift, with lower probability estimates for oil hitting record levels by September and December. Key Takeaways Market pricing suggests a decrease in confidence regarding crude oil reaching an all-time high by September 30, with current odds at 3.9% YES. The probability for crude oil to reach a new high by December 31 is currently at 11.5% YES, indicating a more cautious outlook. Recent reductions in demand forecasts by both the IEA and OPEC appear consistent with a decrease in expectations for a significant oil price surge. What to Watch Market participants will likely focus on further developments in US-Iran talks, as any breakthrough could affect oil supply d...