EIA doesn’t expect summer gasoline demand to dip much despite higher prices
June 12, 2026
The energy markets are lower on the news that a peace deal will be signed soon. Reports say they may sign these papers in conjunction with the G7 meeting which is taking place next week. There have also been some reports that say Switzerland could be the location for the signing. Hope is currently high and prices have sold off on this good news. The other factor of this proposed deal that has crude prices down over $3.00 dollars is that the Strait of Hormuz would be opened immediately.
OPEC on Thursday lowered its forecast for world oil demand growth in 2026 to 970,000 bpd, marking the second straight downward revision. The producer group continued to see a smaller impact on consumption since the Iran war started than other forecasters such as the US EIA and IEA.
JPMorgan in a recent report said the Strait of Hormuz in June will see 5.1 million bpd move through it up from 2.9 million bpd in May and 3.3 million bpd in April and 2.2 million bpd in March.
Oil has been moving and if the peace deal get signed this will open the strait to more oil getting moved around the globe to help the shortfall.
The latest data from the Energy Information Administration show that while the agency expects retail gasoline price this summer to be significantly higher than last year due to the fighting in Iran, it doesn’t expect the increased cost to motorist to have a large impact on gasoline demand during the busy driving season.