EIA Forecasts Prolonged Middle East Oil Supply Disruptions Until 2026

The Energy Information Administration (EIA) has projected that disruptions in oil supply from the Middle East will continue until the end of 2026. According to NS3.AI, the closure of the Strait of Hormuz is expected to result in a loss of 9.1 million barrels per day by April. The EIA report also indicates that the Brent-WTI crude spread could reach a peak of $15 per barrel in April as these disruptions intensify. Additionally, the EIA forecasts that U.S. retail gasoline prices will average their highest levels since 2022 by 2026. The report also includes a downward revision of global oil demand forecasts for 2026 and 2027.