The International Energy Agency has advised governments, businesses, and households to consider measures such as remote work and reduced air travel as part of efforts to lower oil demand following ongoing global supply disruptions.
The agency said the recommendations are intended to ease pressure on fuel markets, which have tightened in recent weeks amid supply constraints linked to the Middle East conflict.
Demand reduction measures proposed
The IEA outlined several short-term actions to help curb oil consumption. These include encouraging work from home arrangements, limiting non-essential air travel, reducing highway driving speeds, increasing car pooling, and expanding the use of public transportation where available.
According to the agency, avoiding flights where alternative transport options exist could help reduce pressure on jet fuel markets. It added that cutting business-related air travel could deliver relatively quick demand-side relief.
The recommendations follow the agency’s coordinated release of 400 million barrels from emergency reserves last week, described as the largest such action since the IEA was established in the 1970s.
Fuel markets under strain
Jet fuel and diesel markets have experienced significant supply tightness and price increases in recent weeks. The pressure has been linked to disruptions affecting shipments through the Strait of Hormuz.
The constraints have led some refiners, particularly in Asia, to consider reducing processing rates and limiting exports. As a result, refined product markets have faced stronger pressure than crude oil markets, with premiums for jet fuel and diesel rising above benchmark Brent crude.
Supply constraints and outlook
Fatih Birol said the situation reflects a major disruption to global oil supply and noted that prolonged instability could have broader economic implications.
The IEA estimates that oil producers in the Gulf have reduced output by at least 10 million barrels per day due to limited export routes and logistical challenges. Storage capacity constraints have also added to supply pressures.
The agency said its latest Oil Market Report provides a range of immediate actions that could be taken to reduce demand and mitigate the impact of current market conditions.