The International Energy Agency (IEA) significantly reduced its estimates for the growth of both global oil supply and demand, stating that both are expected to decline this year compared with 2025 levels. The agency attributed this to the impact of the war in the Middle East on oil flow routes, along with the resulting negative effects on the global economy.
The agency also forecast that global oil demand will fall by about 80,000 barrels per day in 2026, rather than the previous outlook that had indicated an annual increase of 640,000 barrels per day.
In its April report released on Tuesday, the agency said that global oil supplies are expected to decrease by 1.5 million barrels per day in 2026, after last month’s report had suggested an increase of 1.1 million barrels per day.
The agency further explained that attacks targeting energy infrastructure in the Middle East, along with Iran’s effective closure of the Strait of Hormuz, caused the largest disruption to oil supplies ever recorded—amounting to supply losses of 10.1 million barrels per day in March.
The agency also expected that the global refining run rate would drop by roughly one million barrels per day during 2026, reaching 82.9 million barrels per day, while profit margins for intermediate products hit record levels.
_______________________________________
Check out the latest Stocks and Indices News.
Check out the latest Commodities News.
Check out the latest Cryptocurrency News.
Check out the latest Energy News.
