IEA cuts 2026 oil demand outlook by 2.5 million bpd
IEA forecasts 2026 world oil demand to drop by 2.5M bpd and sees 2026 global oil supply averaging 100.7M bpd, down 5.7M bpd from 2025.
The IEA said total world oil supply is expected to be 1.74M BPD lower than demand in 2026, compared with a previous forecast of 1.27M BPD lower. It now sees a full recovery in oil supplies from Gulf producers deferred until 2027. World oil supply is forecast to average 100.7M BPD in 2026, down 5.7M BPD from 2025 and 1.3M BPD lower than the previous forecast. Global observed oil inventories fell by a further 95M barrels in August.
The IEA said progress in resolving the Middle East and Russia-Ukraine conflicts is needed more than ever to avoid further oil market tightening.