IEA Lowers Oil Demand Forecast Amid Strait of Hormuz Disruptions

The global oil market is facing disruptions due to conflicts in the Middle East and blockages of key shipping channels. The International Energy Agency (IEA) has reported that global daily oil consumption will decrease by 1.6 million barrels year-on-year in 2026, marking a larger decline than previously estimated.

The IEA's monthly report indicates that the continued closure of the Strait of Hormuz is disrupting international supply chains and limiting the supply of refined products. This has led to persistently high fuel prices, further suppressing oil consumption.

Global oil inventories fell sharply in July, dropping by 2.2 million barrels per day due to a significant reduction in oil stored in floating storage at sea. The IEA forecasts that global economic growth will rise by 0.5 percentage points to 3.4% in 2027, driving the recovery in demand.