US-Iran conflict to cut global fuel demand by 2.4mbpd
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Verified Synthesis~96s readGlobal gasoline demand is forecast to fall by 330,000 barrels per day, while jet fuel and kerosene demand will decline by 200,000 barrels per day. Liquefied petroleum gas (cooking gas) demand is expected to drop by 460,000 barrels per day, while naphtha consumption will decline by 350,000 barrels per day.
Context & Background
- ✦Fuel oil demand is projected to drop by 120,000 barrels per day.
Key Figures & Named Entities
2026:The US-Iran conflict is expected to reduce global refined petroleum products demand by 2.4 million barrels per day before the end of 2026, as supply disruptions, rising fuel prices and restrictions on shipping and aviation weigh on consumption across major markets.2027:While the disruption is expected to ease gradually, the report projects that refined products demand will rebound by around 2.5 million barrels per day in 2027 as trade flows normalise, feedstock availability improves, fuel prices ease and air travel recovers.2026:In the LPG market, Asia is expected to account for most of the decline, with demand projected to fall by 370,000 barrels per day in 2026.
Outlook & Next Steps
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Key Takeaways
Verified Extract- Global gasoline demand is forecast to fall by 330,000 barrels per day, while jet fuel and kerosene demand will decline by 200,000 barrels per day.
- Liquefied petroleum gas (cooking gas) demand is expected to drop by 460,000 barrels per day, while naphtha consumption will decline by 350,000 barrels per day.
- Fuel oil demand is projected to drop by 120,000 barrels per day.
Key Facts:2026: The US-Iran conflict is expected to reduce global refined petroleum products demand by 2.4 million barrels per day before the end of 2026, as supply disruptions, rising fuel prices and restrictions on shipping and aviation weigh on consumption across major markets.2027: While the disruption is expected to ease gradually, the report projects that refined products demand will rebound by around 2.5 million barrels per day in 2027 as trade flows normalise, feedstock availability improves, fuel prices ease and air travel recovers.2026: In the LPG market, Asia is expected to account for most of the decline, with demand projected to fall by 370,000 barrels per day in 2026.2027: Chinese LPG demand is projected to rise by 170,000 barrels per day in 2027 as feedstock availability improves and additional petrochemical capacity comes on stream.
Editorial Excerpt
The US-Iran conflict is projected to reduce global refined petroleum products demand by 2.4 million barrels per day by the end of 2026, says Kpler.
Frequently Asked Questions About This Story
What is the key takeaway from this report?
Global gasoline demand is forecast to fall by 330,000 barrels per day, while jet fuel and kerosene demand will decline by 200,000 barrels per day.
What additional context is highlighted in this report?
Liquefied petroleum gas (cooking gas) demand is expected to drop by 460,000 barrels per day, while naphtha consumption will decline by 350,000 barrels per day.
What timeline or key figures were confirmed?
The US-Iran conflict is expected to reduce global refined petroleum products demand by 2.4 million barrels per day before the end of 2026, as supply disruptions, rising fuel prices and restrictions on shipping and aviation weigh on consumption across major markets.
