IEA Flags Tighter Global Oil Balances Amid Geopolitical Disruptions

Crude Oil prices remain elevated due to supply concerns stemming from geopolitical disruptions. The International Energy Agency (IEA) reported that global oil markets tightened further in July, with demand, supply, refining runs, and inventories all affected by high fuel prices.

The IEA revised the 2026 demand outlook lower, citing a decline of 1.6 million barrels/day as consumption is weighed down by the closure of the Strait of Hormuz and high prices.

Supply rose to 101.5 million b/d in July but remains below year-earlier levels, with Gulf output still largely shut in. Refinery crude throughputs climbed to 80.9 million b/d but remain nearly 5 million b/d below last year's levels.