Global oil demand is forecast to drop by 2.45mn b/d year-on-year this quarter, the IEA said in its latest Oil Market Report (OMR) released this week. The closure of the Strait of Hormuz is now well into its third month, and the resultant supply shortfall and price increases are causing end-users to increasingly curtail consumption. The petrochemical and aviation sectors have been the most affected to date.
The drop in demand is primarily focused on the more price sensitive non-OECD countries, but as prices continue to trend upwards the disruption will spread. (CONTINUED - 922 WORDS)
