Oil Drives IEA Forecasts for Global Demand Growth in 2026

The International Energy Agency has revised its outlook upward for oil, signaling stronger global demand growth in 2026 than previously expected.

The update reflects new assessments of market conditions, supply dynamics, and inventory levels.

According to the latest monthly report, global oil demand is now projected to increase by around 930,000 barrels per day, compared with lower estimates in earlier forecasts.

This adjustment highlights the resilience of consumption despite economic uncertainties.

At the same time, global oil supply is expected to continue exceeding demand, though the surplus is seen narrowing compared with prior projections.

A more balanced outlook between production and consumption, along with high inventory levels, is helping to contain price volatility.

The agency noted that ample stockpiles are providing reassurance to market participants, contributing to price stability and supporting confidence in the market’s ability to absorb shifts throughout 2026.