Oil prices dropped, trimming gains from previous sessions, as attention shifted to expectations of weaker global oil demand this year alongside an ongoing stalemate in US-Iran talks.
Brent futures slipped 42 cents, or 0.47 percent, to $88.56 a barrel, while West Texas Intermediate crude fell 55 cents, or 0.66 percent, to $82.72.
OPEC lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day in its monthly report on Wednesday, while the International Energy Agency projected a 1.6 million bpd contraction in consumption this year.
Prices also faced pressure from a surprise build in US commercial crude inventories, which rose by 17.4 million barrels to 424.4 million barrels in the week ended August 7, according to the Energy Information Administration.
Meanwhile, deadlocked talks between Iran and the US to end the Gulf war kept underlying prices elevated, alongside continued shipping attacks in the Strait of Hormuz and the Bab el-Mandeb Strait.