MOSCOW, Russia: The International Energy Agency (IEA) has significantly downgraded its forecast for global oil demand in 2026 and now expects the demand to decline by 1.12 million barrels per day (BPD) to 103.292 million BPD, the organisation said in its fresh report today.
According to the updated data, demand is expected to decrease by 1.118 million BPD this year, which is 700,000 BPD more than it was forecast a month ago – 418,000 BPD, reported Sputnik/RIA Novosti.
At the same time, global oil demand in 2026 is expected to reach 103.292 million BPD, compared to 104.027 million BPD in the previous report. Thus, the forecast has been lowered by about 735,000 BPD.
The IEA has upgraded its forecast for global oil production in 2026 by 0.04 million BPD to 3.87 million BPD, and now expects production at 102.37 million BPD.
According to the May report, the agency expected the 2026 production to decrease by 3.91 million BPD to 102.25 million BPD.
Seven OPEC+ countries with voluntary restrictions decreased oil production in May by 50,000 BPD to 21.19 million BPD, and produced 9.07 million BPD below the quota level, added the report;
The total oil production of Russia, Saudi Arabia, Iraq, Algeria, Kuwait, Kazakhstan and Oman in May amounted to 21.19 million BPD against 21.24 million BPD in April.
At the same time, according to the IEA, taking into account the current quotas, remaining voluntary restrictions and compensation schedules, the target level for seven countries was 30.26 million BPD.
“Crude oil production from the 21 members of OPEC+ fell by a further 1.1 mb/d m-o-m in May, to 30.3 mb/d, largely on sharply lower Iranian supply (-1.1 mb/d),” the report read. – BERNAMA-SPUTNIK/RIA NOVOSTI
