S&P Global Cuts 2026 Oil Demand Forecast by 700,000 Bpd Due to Iran War

 

(Reuters) – S&P Global Energy has reduced its global oil ​demand forecast for 2026 by ‌700,000 barrels per day as the U.S.-Iran war disrupts energy supplies from ​the Middle East and ​hits demand in the second quarter, ⁠consultant Ethan Ng said on ​Thursday.

• Global oil demand growth expected ​to shrink to 400,000 bpd versus pre-war forecast of 1.1 million bpd.
• Oil demand ​to fall sharply in the ​Middle East and Asia in Q2.
• About 178 ‌refineries ⁠accounting for around 40% of the world’s refining capacity are affected by the closure of ​the Strait ​of Hormuz.
• Physical ⁠Dated Brent prices are capped by a huge ​drawdown of strategic petroleum ​reserves ⁠by countries such as Japan and South Korea to manage fuel ⁠shortages.
• Diesel ​and jet fuel ​have seen the biggest price impact.

Reporting by ​Florence Tan. Editing by Mark Potter

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