The IEA says global oil supplies rose by 4.1 million bpd in June but remained 9.4 million bpd below pre-war levels.
The International Energy Agency (IEA) expects global oil demand to decline this year for the first time since 2020, citing the severe impact of the Iran war on oil production and exports across the Middle East, CNBC reported. 
In its monthly report released on Friday, July 10, the IEA forecast global oil demand to contract by 1 million barrels per day (bpd) year-on-year in 2026, marking the first annual decline since the COVID-19 pandemic.
The agency also warned that the recent military escalation between the United States and Iran could derail its previous forecast for a sizeable global oil supply surplus next year.
The report showed a slight improvement in the supply-demand balance, with the global oil market now expected to post a supply deficit of 860,000 bpd in 2026, compared with a decline of 920,000 bpd projected in the previous report.
The IEA said global oil supplies rose by 4.1 million bpd in June but remained 9.4 million bpd below pre-war levels.
Looking ahead, the agency expects global oil supply to increase by 7.5 million bpd in 2027, provided shipping through the Strait of Hormuz continues to improve. Under that scenario, global oil demand is projected to grow by 2 million bpd next year.
The IEA says global oil supplies rose by 4.1 million bpd in June but remained 9.4 million bpd below pre-war levels.
The International Energy Agency (IEA) expects global oil demand to decline this year for the first time since 2020, citing the severe impact of the Iran war on oil production and exports across the Middle East, CNBC reported.
In its monthly report released on Friday, July 10, the IEA forecast global oil demand to contract by 1 million barrels per day (bpd) year-on-year in 2026, marking the first annual decline since the COVID-19 pandemic.
The agency also warned that the recent military escalation between the United States and Iran could derail its previous forecast for a sizeable global oil supply surplus next year.
The report showed a slight improvement in the supply-demand balance, with the global oil market now expected to post a supply deficit of 860,000 bpd in 2026, compared with a decline of 920,000 bpd projected in the previous report.
The IEA said global oil supplies rose by 4.1 million bpd in June but remained 9.4 million bpd below pre-war levels.
Looking ahead, the agency expects global oil supply to increase by 7.5 million bpd in 2027, provided shipping through the Strait of Hormuz continues to improve. Under that scenario, global oil demand is projected to grow by 2 million bpd next year.
