Oil Prices Rise $7 per Barrel This Week

Oil prices rose sharply this week, recording a gain of $7 per barrel. The OPEC monthly oil market report lowered its projection for global crude demand growth in 2026 by 200,000 barrels per day from the previous forecast. It now expects consumption to rise by 1.17 million barrels per day in 2026 and raised its outlook for 2027 to 1.54 million barrels per day.

The IEA also cut its 2026 demand forecast. These revisions pointed to weaker consumption growth than previously expected. Oil prices nonetheless moved higher. Factors cited include ongoing tensions with Iran, risks around the Strait of Hormuz, and limited progress on energy issues at the Xi-Trump summit held in Beijing.

com. It produced few concrete outcomes relevant to commodity markets. Iran stated it had no trust in the United States and indicated it was prepared to resume fighting. The statement reduced expectations for a quick reopening of the Strait of Hormuz.

The waterway remains a critical chokepoint for global oil shipments. Disruptions there have contributed to higher prices in recent days. As of Friday, May 15, 2026, Brent crude prices were trading near $109 per barrel while WTI crude stood at approximately $104.70 per barrel.

Both organizations cited slower economic activity and efficiency gains among reasons for the reduced demand outlook. The revisions mark a shift from earlier projections that had anticipated stronger consumption growth. Market participants continue to monitor developments around Iran and potential supply disruptions.

Any sustained closure or restriction at the Strait of Hormuz could further affect global oil flows. The proposal remains in early stages.