IEA Cuts Global Oil Supply Forecast Amid Ongoing Conflicts
The International Energy Agency has issued another warning about the global oil refining system, stating it is 'stretched to the limit' due to ongoing conflicts in Iran and Ukraine. This alert comes as part of the agency's monthly report on oil supplies and demand.
In its latest forecast, the IEA cut its 2026 global oil supply projection by 6%, citing the prolonged impact of the Iran war on production levels. Additionally, it now expects a decline in global oil demand of 2.5 million barrels per day this year.
The agency also noted that shrinking inventories and strained refineries could further tighten markets, exacerbating the current energy shock. The full recovery of flows from Middle Eastern producers has been delayed until next year due to ongoing tensions in the region.