The International Energy Agency (IEA) adjusted its forecast for global oil demand in 2026 on Wednesday. The reason for this reduction is the ongoing disruptions in the Strait of Hormuz and the rise in fuel prices, which negatively affects consumption.
In its August Oil Market Report, the IEA forecasts that global oil demand in 2026 will decrease by 1.6 million barrels per day (mb/d). This is 510,000 barrels per day more than previously estimated in July.
Although global oil supply increased by 2.4 million barrels per day, reaching 101.5 million barrels per day in July, it still lags behind pre-year levels by 6.3 million barrels per day. Resumed military actions and maritime incidents in July and early August undermined efforts to restore supplies, prompting the IEA to lower its third-quarter oil supply forecast by 1.7 million barrels per day compared to the previous report.
Oil production in Persian Gulf countries grew by 2.5 million barrels per day in July, reaching 23.9 million barrels per day after increasing by 3.7 million barrels per day in June; however, it remains 8.3 million barrels per day below pre-war levels. Since the agreement allowing resumption of transit through the Strait of Hormuz and unimpeded passage through the Bab el-Mandeb Strait remains unattainable, the IEA has lowered its supply forecasts for the remainder of the year. According to the report, global oil supply in 2026 is expected to fall by 4.3 million barrels per day to 102 million barrels per day.
Benchmark crude oil prices sharply rose to a two-month high in July. This occurred after the restoration of oil supplies from the Gulf changed direction following the collapse of the ceasefire agreement between Iran and the US in mid-June. In July, oil prices traded in an unusually wide range of $40 per barrel, driven by sudden changes in diplomatic expectations.
The IEA noted that higher fuel prices exert additional downward pressure on oil consumption. Global oil demand is projected to expand by 2.4 million barrels per day in 2027.
The Chinese domestic passenger aircraft C919 successfully landed at the new Ulaanbaatar airport in Mongolia on Wednesday afternoon. It arrived after flying from Beijing Capital International Airport, completing its first scheduled international commercial passenger flight.
A ceremonial event with a water welcome was held at the airport. Passengers gradually disembarked from the aircraft while watching a unique ethnic dance performance, and they were greeted by a procession of escorts in traditional Mongolian attire.
This route marks the first international one opened for the C919 since the start of commercial operation, signifying the official transition of the domestically developed Chinese mainline passenger jet into a new era of regular international flights.
According to available information, the international route is served by flights CA723/CA724, with daily scheduled flights between Beijing and Ulaanbaatar.
As the first large passenger aircraft developed in China for civil use, the C919 has been successfully operating on various domestic routes since commencing commercial activity. It has gained wide recognition in the market due to its reliable flight characteristics, comfortable cabin, and high safety standards.
The operation of this China-Mongolia international route demonstrates that the C919 has successfully passed the scrutiny of bilateral international civil aviation standards, thereby officially qualifying for regular international commercial passenger operations.
The domestically developed passenger aircraft C919 in China has officially commenced regular international commercial flights. The first flight took place on Wednesday afternoon from Beijing to Ulaanbaatar.
Air China flight CA723 departed from Beijing Capital International Airport at 15:00 local time. Upon arrival in the capital of Mongolia, a water cannon salute is expected, which is the highest honor in civil aviation, to mark this historic achievement.
According to official data, as of August 10, the C919 served 57 routes connecting 25 cities and completed over 7.5 million passenger transports.
Furthermore, this aircraft has been showcased at major international air shows, including two editions of the Singapore Airshow and one in Dubai.
