IEA Cuts Oil Supply Forecast Amid Ongoing Middle East Tensions

The International Energy Agency (IEA) has revised its forecast for global oil supply in 2026, predicting a 4% drop this year due to ongoing hostilities in the Middle East.

The IEA's monthly oil market report states that global oil supply will fall by 4.3 million barrels per day (bpd), taking total supply to its lowest forecast yet for this year at 102.02 million bpd.

This would put global oil supply around 1.27 million barrels per day below demand, widening from an 860,000 bpd deficit implied by the IEA's July forecasts.