https://www.engineeringnews.co.za
Oil|Strait Of Hormuz|International Energy Agency|Middle East
|||
oil|strait-of-hormuz|international-energy-agency-organization|middle-east

Global oil supply to plunge below demand this year on Iran war, IEA says

13th May 2026

By: Reuters

  

Font size: - +

Global oil supply will not meet total demand this year as the Iran war wreaks havoc on Middle East oil production, the International Energy Agency (IEA) said in its monthly oil market report on Wednesday.

"With Hormuz tanker traffic still restricted, cumulative supply losses from Gulf producers already exceed 1 billion barrels with more than 14-million (barrels per day) of oil now shut in, an unprecedented supply shock," the agency said.

Its base-case forecast is for a gradual resumption of traffic through the Strait of Hormuz from the third quarter onwards, it said.

The IEA forecasts imply that supply will come in 1.78-million barrels a day below total demand in 2026, in contrast to a 410 000 barrels a day surplus projected in last month's report and a close to four-million barrels a day surplus in its December report.

Supply will fall by around 3.9-million barrels per day across 2026 due to the war, the agency said, slashed from its previous forecast of a 1.5-million barrels a day drop.

Meanwhile, the IEA now sees demand falling by 420 000 barrels a day this year, compared to a previous forecast of an 80 000 barrels a day drop. Consumption is also under pressure from the war as price spikes lead to demand destruction and slower economic growth, it said.

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Latest News

Vessels in the Strait of Hormuz
Oil extends decline on rising Middle East supply
Updated 1 hour 17 minutes ago By: Reuters

Showroom

SafeQuip
SafeQuip

SafeQuip is a leading distributor and manufacturer of fire safety solutions, offering a comprehensive range of products designed to meet all...

VISIT SHOWROOM 
Sulzer Pumps (SA) (Pty) Ltd
Sulzer Pumps (SA) (Pty) Ltd

Sulzer South Africa, established in 1922, partners with critical industries like power, oil & gas, water, mining, and chemicals to boost...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 June 2026
Magazine round up | 19 June 2026
19th June 2026

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.066 0.103s - 163pq - 2rq
Subscribe Now