IEA Cuts Oil Supply Forecasts Amid Saudi Production Slump

The International Energy Agency (IEA) has updated its global oil supply forecasts. The agency's report notes that global oil supply fell by 1.6 million barrels per day in August compared to the previous month, reaching 100.1 million barrels per day.

This decline was largely attributed to attacks on tankers and energy infrastructure in the Strait of Hormuz and the Red Sea, which led to a significant reduction in Saudi Arabia's oil production. The country cut its total oil production by 2.6 million barrels per day, while crude oil shipments fell to 6 million barrels per day, the lowest level in over three decades.

The IEA also reported that OPEC+ countries saw a decline in production of 1.8 million barrels per day in August, totaling 38.8 million barrels per day. However, oil production outside the OPEC+ group rose by 240,000 barrels per day to reach 61.3 million barrels per day.