Mumbai, May 13 -- International Energy Association or IEA has stated in a latest monthly update that world oil demand is forecast to contract by 420 thousand barrels per day or kb/d y-o-y in 2026, to 104 million barrels per day or mb/d, 1.3 mb/d less than its pre-war forecast. The biggest decline is in 2Q26, down by 2.45 mb/d, of which the OECD accounts for 930 kb/d and the non-OECD for 1.5 mb/d. The petrochemical and aviation sectors are currently most affected, but higher prices, a weaker economic environment and demand-saving measures will increasingly impact fuel use.
Global oil supply declined by a further 1.8 mb/d in April to 95.1 mb/d, taking total losses since February to 12.8 mb/d. Output from Gulf countries affected by the closur...