EIA Sees Middle East Oil Output Struggling to Recover by End of 2027
The US Energy Information Administration (EIA) has revised its forecast for Middle East oil production, predicting that some producers will struggle to restore output to pre-conflict levels by the end of 2027.
Disruptions to shipping through the Strait of Hormuz and attacks on energy infrastructure have forced oil producers in the region to sharply reduce production, leading to a significant supply deficit and high oil prices.
The EIA estimates that about 5.5 million barrels per day (bpd) of Middle East oil output was shut-in during July, which is over 5% of global consumption.
Although the agency expects shipments through Hormuz to slowly increase in September, it anticipates that some production will remain shut for longer than expected, with around 600,000 bpd of production from the region likely to be offline through the end of 2027.