IEA Sees Oil Supply Collapse as Gulf Disruptions Persist

The International Energy Agency (IEA) has revised its forecast for global oil supply, predicting a decline of 5.7 million barrels per day in 2026.

This represents a steeper drop than previously estimated, with the agency attributing the decrease to ongoing disruptions in the Middle East.

The IEA expects global oil demand to fall by 2.5 mmbbl/d this year, exceeding its previous forecast of a 1.6 mmbbl/d drop due to high fuel prices weighing on consumption.

As a result, markets are increasingly relying on inventories, with global oil stocks declining by 3.1 mmbbl/d in August to their lowest level since 2023.