Oil Demand Slumps Amid Price Hikes and Supply Shortfalls

Rising oil prices and supply constraints are expected to dampen global demand this year, according to an updated forecast by Energy Intelligence. Although consumption is predicted to rebound in 2027 as the situation in the Middle East normalizes, it will take a hit in 2026.

The forecast shows that higher costs and reduced availability of oil will eat into demand, but the impact should be temporary. As supply chains stabilize and production increases, global consumption is expected to recover in the next year.

No specific figures or percentages were mentioned in the source regarding the expected decrease in demand or the potential rebound in 2027.