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[BUSINESS] · United States, Iran · 4 sources

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IEA revises 2026 global oil demand forecast downward

The International Energy Agency (IEA) has revised its 2026 global oil demand forecast downward, now predicting a decrease of 1.6 million barrels per day. This adjustment follows a previous July forecast that estimated a 1 million barrel per day decline. The revised global consumption level for 2026 is projected to be 103.29 million barrels per day.

Geopolitical tensions in the Middle East and the ongoing closure of the Strait of Hormuz are cited as primary drivers for these changes. The IEA described the current situation as ‘the largest disruption to global oil production ever recorded,’ noting that the disruption to supply chains has significantly reduced the availability of petroleum products.

Additionally, the IEA reports that global oil reserves have dropped below 7,900 million barrels since April of last year. While production is expected to decline by an average of 4.3 million barrels per day in 2026, a recovery is anticipated in the following year.

Entities

International Energy Agency · Iran · Strait of Hormuz · United States

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