EIA: Middle East Supply Disruptions Likely to Persist Through End-2026

Odaily Planet Daily reports that the U.S. Energy Information Administration (EIA), in its Short-Term Energy Outlook, expects Middle East supply disruptions to continue through the end of 2026. The EIA projects that oil production losses tied to a closure of the Strait of Hormuz could climb to 9.1 million barrels per day in April. The Brent-WTI spread is forecast to widen to a peak of $15 per barrel in April, coinciding with the most severe supply disruptions. U.S. retail gasoline prices are expected to post their highest annual average since 2022 in 2026. The EIA now sees global oil demand at 104.6 million barrels per day in 2026, down from its prior forecast of 105.2 million barrels per day. Demand in 2027 is projected at 106.2 million barrels per day, compared with the previous estimate of 106.6 million barrels per day. (Jinshi)