International Energy Agency Lowers Global Oil Demand Forecast for the Rest of the Year
Due to rising fuel prices triggered by the war in Iran and supply constraints, the energy agency has revised its global demand outlook downward.
The International Energy Agency has lowered its global oil demand forecast for this year due to rising fuel prices caused by the war in Iran, restricted oil supplies, and a worsening economic outlook.
Decline in Global Demand Expectations
Global oil demand is projected to drop by 2.5 million barrels per day year-over-year in the fourth quarter, and decrease by an average of 2.6 million barrels per day this year. While diesel fuel is expected to account for 25% of this decline, the agency projects a partial recovery of 2 million barrels per day next year.
Production and Supply Changes
Global production increased by 2.5 million barrels per day month-over-month in September to reach 102.3 million barrels, led by Gulf producers. Saudi Arabia took the lead in OPEC+ increases, while the United Arab Emirates drove non-OPEC increases.
Fuel Prices and Market Conditions
Gasoline prices in the U.S. averaged $4.33 per gallon on Wednesday, showing an increase compared to a month ago. Brent crude rose 0.6% to $106.37 a barrel, while the U.S. benchmark crude increased 1.2% to $95.30.
International Agreements and Policies
U.S. President Donald Trump announced that he agreed with Russian President Vladimir Putin on an urgent shipment of more than 300,000 tons of diesel to the U.S. Energy policy experts, however, do not expect this new agreement to significantly lower high pump prices.