IEA Slashes Global Oil Demand Forecast Amid Ongoing Middle East Tensions
The International Energy Agency (IEA) has revised its global oil demand and supply forecast downward once again, citing ongoing tensions in the Middle East as a major concern.
In its latest monthly report, the Paris-based agency warned that the impasse in negotiations between the US and Iran, combined with renewed attacks in the region, will hamper the normalization of oil flows until 2027.
The IEA predicts that global oil consumption will drop by 2.5 million barrels per day in 2026 compared to 2025, a far greater decline than its previous forecast of 1.6 million barrels in August.
This downward revision comes as oil prices have surged back above $100 per barrel due to attacks on Iranian oil tankers and concerns about further supply disruptions in the Middle East.