The International Energy Agency (IEA) reported a record 10.1 million barrel per day supply drop in March. The conflict in the Middle East and the closure of the Strait of Hormuz caused this historic disruption. This April Oil Market Report provides the first comprehensive analysis of the crisis.
The IEA now forecasts global oil demand will contract by 80,000 barrels per day in 2026. This projection reverses previous growth expectations as high prices cause widespread demand destruction. Consumption cuts are currently deepest in the Middle East and Asia-Pacific regions. Resuming flows through the Strait of Hormuz remains the most critical factor for market stability.
Brent crude traded near $98.60 per barrel following the report. Markets remained relatively stable as investors likely priced in the supply tightness after the US blockade announcement.