In its latest Oil Market Report released in April, the International Energy Agency (IEA) significantly lowered its global oil supply and demand expectations. The report points out that due to the Middle East conflict causing transportation disruptions in the Strait of Hormuz, global oil demand is expected to shrink by 80000 barrels per day in 2026, marking the first annual decline in demand since the 2020 pandemic and in the past six years.

Meanwhile, global oil supply in March plummeted by 10.1 million barrels per day month on month, to 97 million barrels per day, classified by the IEA as the largest oil supply disruption in history. Affected by this, global refining activities have significantly declined, and international oil prices (Brent crude oil) have once approached $100 per barrel.