IEA says global oil demand to fall for 1st time
For the first time in years, global oil demand is expected to go down, says the International Energy Agency (IEA).
The main reason? Rising prices caused by conflicts in West Asia, which have disrupted oil shipments through a crucial route and reduced flows through the Strait of Hormuz sharply, which normally carries roughly 20% of world oil supplies.
Gulf producers cut supply sharply
Big supply cuts from Saudi Arabia, Iraq, United Arab Emirates, and Kuwait last month led to a 9% drop in global output, about 10 million barrels per day.
Even with futures prices jumping in March, oil still hasn't crossed $100 a barrel.
Meanwhile, Russia has ramped up its exports to 7.1 million barrels daily and nearly doubled its earnings thanks to some sanctions relief.
All these twists show just how much politics and global events can shake up energy markets.