IEA Raises Oil Demand Forecast by 700k Barrels Amid Volatility
The International Energy Agency (IEA) has revised its forecast for global oil demand in 2026, predicting a drop of 2.5 million barrels per day (bpd). This is a significant increase from their previous estimate of a 1.6 million bpd decline.
This increased volatility in crude oil prices could create opportunities for price risk management in the futures and options markets. Benchmark futures products, such as CME Group WTI Crude Oil, NY RBOB Gasoline, and NY Harbor ULSD, have seen high trading volumes from international firms due to ongoing inventory concerns.
In related news, the Australian dollar (AUD/USD) came under pressure as surging crude oil prices and rising Treasury yields revived expectations of a September Fed hike. This led to a rebound in the US dollar and weakness on Wall Street ahead of the consumer price index (CPI) release.