The International Energy Agency (IEA) forecasts global oil demand will decline by 1 million barrels per day in 2026, marking the first annual drop since the COVID-19 pandemic. The decline is attributed to the US-Iran war's disruption of Middle Eastern oil production and exports, particularly impacting the Strait of Hormuz.
OPEC+ countries increased oil production by 2.17 million bpd in June 2026, but remained significantly below their target levels, according to an IEA report. The shortfall totaled approximately 7.51 million bpd.
The International Energy Agency (IEA) forecasts a 1 million b/d decline in global oil demand for 2026, the first since 2020. This contraction is attributed to the Iran war's disruption of Middle East production and exports, particularly via the Strait of Hormuz.
Russia's pipeline gas supplies to the EU rose by 5% (0.4 bcm) in the first half of 2026, according to the IEA. However, supplies are expected to decrease in H2 due to import restrictions.
OPEC+ nations participating in oil production cuts fell short of their targets in May 2026, producing 9.44 million barrels per day less than planned, according to the International Energy Agency (IEA). Kazakhstan was the only major producer to exceed its quota.
An IEA report states the Iran war has exposed major energy risks for Southeast Asia, potentially tripling its import bill to $245 billion by 2035 if it doesn't diversify energy sources quickly. The region faces vulnerability due to reliance on oil and gas through the Strait of Hormuz.
Global electric vehicle sales surged to 20 million units last year, with China leading growth. The US market remains stagnant due to policy issues and Chinese automaker restrictions, challenging startups like Rivian and Lucid. Chinese brands are driving global expansion, particularly in developing economies.
Global oil stockpiles are depleting at a record rate, potentially leading to price spikes, while UK bond yields seesaw amid reports of a potential Labour leadership challenge, sparking fears of another 'Liz Truss moment' in bond markets.
The pound dropped to a near two-week low after reports of Health Secretary Wes Streeting preparing to resign and trigger a Labour leadership contest, impacting bond markets and sterling.
The International Energy Agency reports that the Middle East conflict has caused the loss of around 120 bcm of cumulative LNG supply for 2026-2030, representing 15% of expected global supply. LNG supplies from Qatar and the UAE have fallen by 20 bcm since March due to Strait of Hormuz closure, with Iranian strikes on Qatari plants potentially reducing production by nearly 70 bcm.
