Crude oil slipped below $81 a barrel on Thursday, snapping a five-session rally, as investors refocused on weakening demand prospects amid continued disruption around the Strait of Hormuz. Market participants are tracking flows through the strategic shipping lane, with diplomatic efforts to halt the Iran conflict and restore normal transit still deadlocked.
In response, major producers such as Saudi Arabia and the UAE are exploring alternative routes and methods to sustain exports, and some tankers are reportedly switching off their transponders while passing through the strait.
The International Energy Agency has cut its global oil demand forecast, cautioning that the prolonged conflict and persistently high prices are increasingly curbing consumption. The agency now projects a supply shortfall of 1.8 million barrels per day this quarter—more than double its previous estimate. At the same time, US crude inventories jumped by 17.4 million barrels last week.
