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Crude oil fell to 74.60 dollars per barrel on August 5, 2026, a decline of 1.55 percent from the previous close, according to Trading Economics data. The drop extended losses into a third consecutive session and pushed the weekly decline above 10 percent as positive signals emerged around Middle East supply routes. A report from the International Energy Agency highlighted how such developments could shift the market balance after months of disruption.
Optimism over an interim deal to reopen the Strait of Hormuz has boosted expectations for increased crude flows from Gulf producers, Trading Economics reported. This sentiment reversed some of the upward pressure on prices that had built during earlier phases of regional tensions. The agency noted that tanker traffic restrictions had previously cut exports sharply from key producers including Saudi Arabia and Iraq.
The International Energy Agency’s oil market assessment for May showed global supply had declined by an additional 1.8 million barrels per day in April to 95.1 million barrels per day, taking cumulative losses since February to 12.8 million barrels per day. Gulf exports fell by 9.4 million barrels per day in March and another 760,000 barrels per day in April due to the chokepoint closure. Higher exports from the Atlantic Basin, particularly from the United States and Brazil, partially offset those reductions but could not fully compensate for the shortfall.
Global observed oil inventories declined at an accelerated pace of 4.6 million barrels per day in May after a 2.5-million-barrel-per-day draw in April, the International Energy Agency report found. OECD government inventories reached their lowest level since December 1990 as emergency stock releases intensified. These stock draws have averaged 3.8 million barrels per day since the start of the conflict, according to the agency’s preliminary figures.
For the month of June, Brent crude recorded a decline of about 21 percent following a 19-percent drop in May, marking its biggest monthly losses in records dating back decades, Yahoo Finance data showed. The pattern reflected shifting expectations around supply recovery even as demand forecasts pointed to a 1.1-million-barrel-per-day year-on-year contraction in 2026. The International Energy Agency projected global supply would fall by 3.9 million barrels per day to 102.4 million barrels per day in 2026 before rebounding sharply the following year.
U.S. West Texas Intermediate crude tracked similar movements, settling near 73 dollars per barrel in recent trading after comparable percentage losses, according to market updates from Reuters. Industry participants continue to monitor developments around the Hormuz interim agreement for indications of how quickly restricted volumes might return to the market. The International Energy Agency cautioned that operational and political constraints, including demining efforts, still pose downside risks to any rapid supply normalization.
