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2026-09-16 21:20:11
[High Oil Prices Suppress Asian Consumption, but Demand Reduction is Not Permanent Damage] ⑴ Oil prices exceeding $100 per barrel and limited spot supply are beginning to suppress Asian consumption; however, this decline is best viewed as demand reduction rather than permanent demand damage. ⑵ Middle East crude oil production has fallen from approximately 24.8 million barrels per day in Q4 2025 to approximately 18.2 million barrels per day in Q3. ⑶ S&P stated that as fuels and feedstocks become more expensive and scarce, consumers are reducing driving, industrial enterprises are lowering operating rates, and refineries are cutting processing volumes. ⑷ However, if supply returns to normal and prices fall, some demand may rebound. ⑸ Overall, the current weakness in consumption is more of a passive adjustment under price and supply constraints. Future focus will be on the pace of Middle Eastern production recovery and whether falling oil prices can drive a demand rebound.
