Global Oil Supply Plummets Amid Regional Conflicts

The global oil supply has taken a significant hit due to various conflicts in key regions. According to Reuters calculations using International Energy Agency (IEA) data, countries directly affected by these conflicts collectively produced around 45 million barrels per day of oil in 2025, accounting for over 43% of the global supply.

The disruptions caused by these conflicts have created opportunities for the US as they increased the world's reliance on US oil supplies. However, even US oil supplies have been disrupted at times due to severe weather conditions.

The ongoing conflict in Libya and US restrictions on Venezuelan oil exports have further added to the strain on global oil supply. Analysts estimate that the current Gulf oil disruption stands at around 5-7 million barrels per day.