Hormuz Disruptions Send Oil Demand Forecast Plummeting

The International Energy Agency (IEA) has revised down its oil supply and demand forecasts due to continued disruptions in the Strait of Hormuz.

The Strait's closure, along with ongoing hostilities and high oil prices, have derailed the hoped-for recovery in the oil markets.

In its August Oil Market report, the IEA expects global oil demand to decline by 1.6mn bpd in 2026, which is 510,000 bpd more than its previous forecast.

Global oil supply rose by 2.4mn bpd to 101.5mn bpd in July, but remained 6.3mn bpd below levels of a year ago.