"The International Energy Agency (IEA) noted the threat of 'demand destruction' as consumers and global economies turn away from oil as prices remain elevated. Oil demand is projected to contract by 80,000 barrels per day in 2026, with the sharpest demand cuts in oil coming from the Middle East and Asia Pacific."
"While Brent crude has come down from its record $144 per barrel earlier this month, oil prices remain elevated as the U.S. blockades the Strait of Hormuz, through which 20% of the world's oil usually passes, and as key energy infrastructure in the Middle East continue to be a target for attacks."
"Early policy changes suggest companies and governments are already responding to high oil prices by pulling back. Vietnam and the Philippines have called for work-from-home orders and four-day work weeks, respectively, in the hopes of limiting travel."
"The International Air Transport Association (IATA) stated that jet fuel costs will take months to return to pre-war levels, as a result of destruction of key refinery infrastructure."
Oil prices are declining from their March peak, yet experts caution that this does not indicate global economic stability amid the ongoing Iran war. The International Energy Agency (IEA) warns of potential 'demand destruction' as consumers shift away from oil due to high prices. Oil demand is expected to contract by 80,000 barrels per day by 2026, particularly in the Middle East and Asia Pacific. Supply chain disruptions and elevated prices continue to impact demand, prompting policy changes in various countries to limit travel and fuel consumption.
Read at Fortune
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