S&P Global cuts 2026 oil demand forecast by 700,000 bpd due to Iran war

SEATTLE (Oil Monster): 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.

Courtesy: www.reuters.com