IEA Slashes 2026 Global Oil Demand Forecast to 2.5M BPD Decline, Second-Worst in 60 Years, Citing Iran War
The International Energy Agency (IEA) in its September report revised its outlook by more than 3 million barrels per day in eight months. The agency now projects worldwide consumption will fall by 2.5 million barrels per day this year, ranking as the largest annual demand drop since the 2020 pandemic and the second-worst in 60 years. This comes as WTI crude climbed toward $97 a barrel, settling at $97.26 on September 9 and reaching $104.60 today, while regular gasoline averages $4.33 per gallon, up from $2.78 nine months ago. Consumer sentiment has collapsed to 55.2, and retail sales posted their first monthly drop since last fall, falling 0.6% in July. The IEA expects the recovery in Gulf flows to slip into next year, with Strait of Hormuz traffic disruptions leading to 10.5 million barrels per day of crude production shut-in by Gulf nations.
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