IEA Revises 2026 Forecast: Global Oil Supply To Plunge Below Demand This Year

Global oil demand is set to exceed supply in the current year amid the ongoing conflict in the Middle East, reversing previous projections of a surplus, OilPrice reports citing the latest IEA data. “With Hormuz tanker traffic still restricted, cumulative supply ​losses from Middle East Gulf producers already exceed 1 billion barrels with more than 14 million (barrels per ⁠day) of oil now shut in, an unprecedented supply shock,” said the agency, which advises industrialized countries. According to the May 2026 Oil Market Report by the International Energy Agency (IEA), global oil supply is projected to fall by 3.9 million bpd across 2026, with ~10.5 million bpd of Gulf oil production currently offline. Global oil stocks are depleting at a record pace as supply losses from disruptions to flows via the Strait of Hormuz keep mounting Producers & consumers are responding to the market signals, with Atlantic crude oil exports surging & refiners cutting runs: https://t.co/cOYraM4phx pic.twitter.com/QWJlPICebi — International Energy Agency (@IEA) May 13, 2026 Consumption is also under pressure due to the war as ​price spikes lead ⁠to demand destruction and slower economic growth: Global demand is also forecast to contract by 420,000 bpd compared to a ​previous forecast of an 80,000 bpd drop due […]