IEA Sees 1.5 Million BPD Oil Demand Drop as Iran War Keeps Prices Above $100
Updated
Updated · The New York Times · Jun 7
IEA Sees 1.5 Million BPD Oil Demand Drop as Iran War Keeps Prices Above $100
3 articles · Updated · The New York Times · Jun 7
Summary
The International Energy Agency expects global oil demand to shrink by 1.5 million barrels per day this quarter, signaling sustained demand destruction rather than a brief pullback.
Prices above $100 a barrel, reached periodically since the Feb. 28 U.S. and Israeli attacks on Iran, have tightened supply and curbed consumption as traffic through the Strait of Hormuz is disrupted.
Goldman Sachs warned in March that oil at $100 or higher is associated with more significant demand destruction, reinforcing the IEA’s view that scarcity and high prices are now hitting end users.
Consumers are already adjusting behavior—driving less, using Zoom instead of travel, and taking closer-to-home trips—showing how the Iran war’s supply shock is feeding into weaker fuel demand.