Oil drops on lower demand forecasts despite deadlock in US-Iran talks

BEIJING, Aug 13 : Oil prices fell more than $1 on Thursday as forecasters lowered global oil demand projections for 2026 because of the disruptions from the U.S.-Israeli war on Iran, though the supply constraints from the conflict provided a floor for the market. Brent futures dropped $1.29, or 1.5 per cent, at $87.69 a barrel by 0100 GMT. U.S. West Texas Intermediate (WTI) crude fell $1.30, or 1.6 per cent, to $81.97.The Organisation of Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day in its monthly oil market report on Wednesday. On the same day, the International Energy Agency said it expects a 1.6 million bpd contraction in consumption this year, down from a forecast of 1 million bpd last month, because of restricted fuel su