IEA cuts 2026 oil demand by 1.6 million bpd as Hormuz stays shut
Why it matters: The agency warned inventories are rapidly shrinking, deepening a global supply deficit and pressure on fuel prices.
The International Energy Agency lowered its 2026 oil demand outlook on Wednesday, forecasting a drop of 1.6 million barrels a day as the closure of the Strait of Hormuz and renewed regional hostilities keep energy markets under strain. The new forecast is 510,000 barrels a day weaker than the IEA expected in July. The agency also said global oil supply is set to fall by 4.3 million barrels a day this year, leaving supply about 1.27 million barrels a day below demand. Observed global inventories fell below 7.9 billion barrels in July for the first time since April 2025, while U.S. crude stockpiles dropped under 300 million barrels. Brent crude, after swinging above $100 and near $70 last month, was trading just below $90.