Global oil production suffered its largest historical decline in March, driven by escalating conflict in the Middle East and new restrictions in the Strait of Hormuz.
The International Energy Agency (IEA) reported a massive reduction in global supply of 10.1 million barrels per day. This drop brought total worldwide production down to 97 million barrels per day.
The supply collapse follows targeted attacks on energy infrastructure and significant limitations on crude oil transport through the Strait of Hormuz, one of the planet's most vital energy routes.
Forecasted Demand Reductions
Data provided by the IEA, and cited by news agencies including EFE and Deutsche Welle, shows a significant shift in global energy availability. The supply interruption stems primarily from the difficulty of transporting crude through high-risk maritime corridors.
In light of the supply shock, the IEA also lowered its 2026 demand forecast. The agency now estimates consumption at 104.26 million barrels per day, a decrease of 730,000 barrels per day from earlier projections.
The agency warned that the duration of the conflict will dictate future market stability. If the flow through the Strait of Hormuz does not return to normal levels, demand could plummet by between 1.5 and 5 million barrels per day in the coming months.
“Scarcity and high prices will continue to pressure the market,” the IEA stated.