IEA Cuts Oil Demand Forecast Amid Middle East Tensions and Rising Fuel Prices

The International Energy Agency (IEA) has revised its global oil demand forecast for 2026, citing ongoing conflicts in the Middle East and a significant increase in fuel prices, particularly diesel. According to the agency, global oil consumption is expected to reach approximately 102.44 million barrels per day in 2026, down from 103.29 million barrels per day projected last month.

The IEA also expects a worsening global oil supply deficit in 2026, with a delay in the full recovery of oil supplies from producers in the Gulf until 2027. This is a significant downgrade from the agency's previous estimate, which anticipated a decline of 1.6 million barrels per day compared to the current projection of 2.5 million barrels per day.

The agency's revised forecast reflects the ongoing challenges facing the global oil market, including the impact of conflicts and geopolitical tensions on supply chains and prices. The IEA has emphasized the need for caution in its projections, highlighting the uncertainty surrounding future events that may affect global oil demand and supply.