New Delhi, April 28 -- The sharp fall in global oil demand is being driven more by supply shortages than by high prices, indicating a "forced demand loss" rather than traditional demand destruction, according to a report by JP Morgan.

The report highlighted that global oil supply disruptions surged to 9.1 million barrels per day (mbd) in March and widened to 13.7 mbd in April, following disruptions linked to the Strait of Hormuz. However, the usual balancing mechanisms failed to respond effectively.

It stated, "This suggests that much of the decline is not traditional, price-driven "demand destruction" but rather forced demand loss caused by missing supply. Put differently, physical shortages are constraining actual consumption, so what...