S&P Global Lowers 2026 Oil Demand Forecast by 700,000 Barrels Per Day Due to Iran Conflict

Deep News04-23 20:30

S&P Global's energy division analyst Wu Yien stated on Thursday that the institution has revised down its global oil demand forecast for 2026 by 700,000 barrels per day. This adjustment is attributed to the disruption of Middle East energy supplies caused by the US-Iran conflict, which has negatively impacted second-quarter oil demand.

Global oil demand growth is now expected to narrow to 400,000 barrels per day, compared to a pre-conflict projection of 1.1 million barrels per day.

In the second quarter of this year, oil demand in the Middle East and Asia is anticipated to decline significantly.

Due to the blockade of the Strait of Hormuz, operations at approximately 40% of the world's refining capacity, totaling 178 refineries, have been disrupted.

Several countries, including Japan and South Korea, have initiated large-scale releases from their strategic petroleum reserves to alleviate fuel shortages, which has limited the rise in Brent spot crude oil prices.

The price impact has been most pronounced for diesel and jet fuel.

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