Global oil demand to fall by 2.7 million barrels per day
By the AFREEQUE newsroom, based on Business Day Nigeria
Global oil demand is expected to fall by 2.7 million barrels per day in 2026, to 102.3 million, due to high prices and vehicle electrification. A rebound of two million barrels per day is expected in 2027, according to the International Energy Agency.
Global oil demand is expected to fall by 2.7 million barrels per day in 2026, before rebounding by 2 million barrels per day in 2027, according to the latest monthly report from the International Energy Agency (IEA). Global consumption is expected to average 102.3 million barrels per day this year, while the year-on-year decline is expected to slow to 2.7 million barrels per day in the fourth quarter, compared with an average of 4.4 million in the second and third quarters.
The expected rebound in 2027 should be driven by around 80% by petrochemical feedstocks, including liquefied petroleum gas, ethane and naphtha, as supply chains normalise, according to the IEA. Demand for transport fuels is expected to increase modestly, with high prices encouraging vehicle electrification and fuel savings.
Global oil supply increased by 2.3 million barrels per day in October, to 105.4 million, after rising by 3 million in September, the IEA said. Production is nevertheless expected to decrease by an average of 4.8 million barrels per day over the whole of 2026, before increasing by 6.6 million in 2027, to 108.1 million barrels per day. The increase forecast for next year includes an additional 5.3 million barrels per day in the Gulf countries and 1.1 million in the United States, Canada, Brazil, Argentina and Guyana.
