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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.
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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…
·New York, United States
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Coverage Details
Total News Sources15
Leaning Left2Leaning Right0Center5Last UpdatedBias Distribution71% Center
Bias Distribution
- 71% of the sources are Center
71% Center
L 29%
C 71%
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