IEA Trims Oil Demand Forecast Amid Ongoing Disruptions

The International Energy Agency (IEA) has reduced its forecast for global oil demand in 2026, citing ongoing disruptions in the Strait of Hormuz and high fuel prices. The agency expects a slump of 1.6 million barrels per day, down from its previous estimate of one million barrels.

Crude prices have remained above pre-US-Israeli attacks levels, with supplies remaining crimped by the closure of the Strait of Hormuz. The IEA notes that 'sudden diplomatic pivots' have not led to a significant increase in tanker traffic through the strait.

Global supplies rose by 2.4 million barrels per day in July but still remain 6.3 million bpd lower than last year. However, renewed hostilities and maritime disruptions have undermined recovery efforts.