World oil production down 1.8M barrels per day in April, Int'l Energy Agency says

Global oil supply decreased by a further 1.8 million barrels per day (mb/d) in April to 95.1 mb/d, taking total losses since February to 12.8 mb/d, the International Energy Agency (IEA) said on Wednesday.

"Output from Gulf countries affected by the closure of the Strait of Hormuz was 14.4 mb/d below pre-war levels," the IEA stated.

The agency added that higher production and exports from the Atlantic Basin provide some relief, assuming flows through the strait gradually resume from June, global oil supply is projected to decline by 3.9 mb/d on average in 2026, to 102.2 mb/d.

The IEA also announced that world oil demand is forecast to contract by 420,000 barrels per day year-on-year in 2026, to 104 mb/d; 1.3 mb/d less than the agency's pre-war forecast.

The biggest decline will be in the second quarter of 2026, the agency said, adding that the demand will down by 2.45 mb/d, of which the OECD accounts for 930,000 barrels per day and the non-OECD for 1.5 mb/d.

The petrochemical and aviation sectors are currently most affected, but higher prices, a weaker economic environment and demand-saving measures will increasingly impact fuel use, it said.