EIA Report: Oil Demand Could Provide some Fuel Relief
Inventories are projected to drop to just under 2.3 billion barrels by December as lost Middle Eastern output keeps prices elevated, the EIA said.
- On Tuesday, the Energy Information Administration reported that OECD oil stockpiles have fallen to their lowest levels since 2003, a rapid drawdown driven by the ongoing war in the Middle East.
- The Strait of Hormuz remains effectively closed, forcing global oil inventories to deplete at a record pace to offset the loss of over 11 million barrels per day of output.
- Top consuming nations, including China, the United States, and India, have tapped inventories, while wholesale diesel and aviation fuel prices are set to increase by more than 60 per cent this year.
- Marking the first decline since the pandemic-related slump of 2020, high prices and conservation initiatives will cause global oil demand to shrink, with the EIA now expecting a reduction of 1.1 million barrels per day.
- Even with shipments resuming in the third quarter of 2026, the agency assumes the waterway "will remain effectively closed in the near term," adding that production will not return to pre-conflict levels until early 2027.
15 Articles
15 Articles
EIA report: Oil demand could provide some fuel relief
Trouble in the Middle East usually rattles oil markets. This time, however, lower demand for oil worldwide could keep fuel prices from climbing as high as many expect. That’s the latest update from the U.S. Energy Information Administration. Higher fuel prices, reduced fuel availability and government initiatives are limiting oil consumption this year, particularly in Asia, EIA said. These factors have led to 1 million fewer barrels of oil being…
Wealthy nations’ oil inventories fall to 23-year lows
Oil stockpiles in the world’s wealthiest nations haven’t been this low since George W. Bush was in the White House, the US Energy Department’s forecasting arm said Tuesday. According to the Energy Information Administration, global oil inventories are expected to tumble by 6.3 million barrels per day this quarter and by another 7.66 million in the third quarter. The energy system has had to aggressively drain commercial and emergency stockpiles …
The US Energy Information Administration (EIA) has revised its 2026 oil price forecasts upwards due to the ongoing de facto closure of the Strait of Hormuz and rapidly dwindling global inventories. According to the new report, the Brent crude oil forecast has risen to $95.39, while the supply crisis has impacted OECD inventories since 2003.
Coverage Details
Bias Distribution
- 67% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
