Oil prices retreat on weaker demand outlooks as China fuel cut looms

International oil prices pulled back on August 13 after recent strong gains as weaker 2026 demand forecasts from OPEC and the IEA and a larger-than-expected 17.4 million-barrel build in U.S. crude inventories weighed on sentiment. WTI fell about 1.6% to $81.9 a barrel and Brent touched $87.6, while Japan's domestic crude futures also declined, with the front-month January 2027 contract opening 510 yen lower at 74,530 yen per kiloliter. In China, Zhuochuang Information expects a fifth retail fuel price cut of 2026 when the pricing window opens at midnight on August 14, lowering the cost of filling a 70-liter private car tank by about 11 yuan. Losses in oil were limited by continued shipping disruption around the Strait of Hormuz and the Bab el-Mandeb Strait, leaving the market caught between softer demand expectations and persistent geopolitical supply risks.

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