Logo ofInternational Energy Agency (IEA)
The International Energy Agency (IEA) lowered its forecasts for global oil demand and supply in 2026, amid continued disruption to the reopening of the Strait of Hormuz and higher fuel prices, which are expected to exacerbate the global oil market supply deficit compared with previous estimates. 
According to the agency’s monthly report released today, Aug. 12, Global oil demand is expected to decline by 1.6 million barrels per day (bpd) in 2026, compared with its previous forecast of a 1 million bpd decline, according to Reuters.
On the supply side, the IEA lowered its forecast for global oil supply in 2026 to a decline of 4.3 million bpd, compared with a 3.7 million bpd decrease forecast in its July report.
As a result, total global oil supply is expected to fall to 102.02 million bpd, the lowest level in the agency’s 2026 forecasts.
The IEA said the oil market is expected to face a supply deficit of 1.27 million bpd in 2026, compared with its previous forecast of an 860,000-bpd deficit.
The agency expects the disruptions in July to further deepen the global oil market deficit.
Logo ofInternational Energy Agency (IEA)
The International Energy Agency (IEA) lowered its forecasts for global oil demand and supply in 2026, amid continued disruption to the reopening of the Strait of Hormuz and higher fuel prices, which are expected to exacerbate the global oil market supply deficit compared with previous estimates.
According to the agency’s monthly report released today, Aug. 12, Global oil demand is expected to decline by 1.6 million barrels per day (bpd) in 2026, compared with its previous forecast of a 1 million bpd decline, according to Reuters.
On the supply side, the IEA lowered its forecast for global oil supply in 2026 to a decline of 4.3 million bpd, compared with a 3.7 million bpd decrease forecast in its July report.
As a result, total global oil supply is expected to fall to 102.02 million bpd, the lowest level in the agency’s 2026 forecasts.
The IEA said the oil market is expected to face a supply deficit of 1.27 million bpd in 2026, compared with its previous forecast of an 860,000-bpd deficit.
The agency expects the disruptions in July to further deepen the global oil market deficit.
