IEA Warns of 2.5 Million Barrel Per Day Oil Demand Decline in 2026

The International Energy Agency (IEA) has released a report stating that global oil demand will decline by 2.5 million barrels per day in 2026, with the Middle East and Asia accounting for 80% of this decline.

This prediction is based on current trends, which have seen a cumulative decline in demand of more than 1 billion barrels over the past six months.

The largest decline was recorded in China, where oil imports, refinery utilization rates, and petroleum product shipments have fallen significantly compared to pre-war levels. Actual oil demand in China has decreased by 1.7 million barrels per day since February and 1.1 million barrels per day lower than during the same six-month period a year earlier.

The decline in demand from end-users is also intensifying in other markets, with a significant drop observed in the Middle East due to curtailed petrochemical operations and air travel. Some governments have imposed fuel consumption restrictions and emergency conservation measures, while shortages of petroleum products and rising prices have led to a decline in consumption in other countries.