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World oil demand set for first annual decline since 2020, IEA says
CNBC • • general
Key Points:
- The International Energy Agency (IEA) forecasts a decline in global oil demand by 1 million barrels per day in 2026, marking the first annual decrease since 2020.
- The decline is largely due to disruptions caused by the Iran war, particularly the closure of the Strait of Hormuz, a critical shipping route for oil and gas exports.
- The IEA's optimistic forecast assumes a ceasefire and gradual reopening of the Strait of Hormuz, but recent hostilities between the U.S. and Iran have slowed tanker traffic and increased uncertainty.
- The agency warns that renewed conflict in the Gulf could further disrupt oil markets, emphasizing the need for a lasting peace agreement to stabilize supply and demand.
- Despite a potential market surplus by year-end, the situation remains fragile and dependent on the resumption of normal shipping and production activities in the Middle East.
