IEA Reports Drop in Global Oil Supply in April

(MENAFN) Global oil production fell significantly in April, dropping by 1.8 million barrels per day to 95.1 million, according to the International Energy Agency (IEA), with total losses since February reaching 12.8 million barrels per day.

The agency attributed the decline largely to disruptions affecting Gulf production, noting that output from countries impacted by the closure of the Strait of Hormuz remains well below pre-war levels.

According to reports, the IEA said production from Gulf states is currently about 14.4 million barrels per day lower than levels seen before the conflict. While increased supply from the Atlantic Basin has helped offset some of the shortfall, the agency warned that global balances remain under pressure.

Looking ahead, the IEA projected that if shipping flows through the Strait gradually recover from June, global oil supply could still fall by an average of 3.9 million barrels per day in 2026, reaching about 102.2 million barrels per day.

On demand, the agency forecast a contraction of 420,000 barrels per day year-on-year in 2026, lowering total global consumption to around 104 million barrels per day—significantly below earlier expectations.

The sharpest decline is expected in the second quarter of 2026, when demand could fall by 2.45 million barrels per day, driven by weaker consumption in both OECD and non-OECD economies.

The IEA said petrochemicals and aviation are currently the most affected sectors, adding that high prices, slowing economic growth, and fuel-saving measures are likely to further reduce overall energy demand.

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