Hormuz Disruptions Trigger Global Oil Demand Revisions
The International Energy Agency (IEA) has cut its forecast for global oil demand in 2026, citing disruptions around the Strait of Hormuz and elevated fuel prices as contributing factors.
According to the agency's latest market update report, global oil demand is expected to decline by 1.6 million barrels per day (mb/d) over the year, down from its previous estimate of a 510,000 b/d reduction.
The downward revision reflects the ongoing impact of disruptions around the Strait of Hormuz, which has resulted in reduced consumption and a subsequent shortfall in supply.
The agency projects that global oil demand will contract by 4.9 mb/d in the second quarter before easing to 2.8 mb/d in the third quarter, before returning to growth in the final quarter.