In a first, the International Energy Agency (IEA) reported that global demand for oil products is in process of dropping by about 1 million bpd during the Iran war, due to the cut-off of supplies of oil. The IEA estimate is somewhat dubious; the drop is below what has been forecast by oil-product data companies tracking shipments, such as Kpler. But the ‘demand destruction’ estimated by IEA, as expected, occurred primarily in Asia nations other than China, when those countries’ oil supplies were hit the hardest by the closure of the Strait of Hormuz, and were forced to curtail their own use of oil products.
This depressionary demand destruction has led to foolish forecasts by Wall Street “oil experts” that oil markets will “be in surplus” by 2027.
