Commodities
IEA Slashes Oil Supply Forecast Amid Ongoing Iran War Disruptions
The International Energy Agency (IEA) has revised its forecast for global oil supply in 2026, citing ongoing disruptions caused by the Iran war. The agency now projects a decline of 4.3 million barrels per day (bpd), which is 600,000 bpd deeper than its previous estimate.
The IEA tied its outlook to a resolution of the conflict and the reopening of key shipping routes. The global supply is expected to average 102 million bpd this year.
Gulf producers were able to increase output in July, but their ability to transport barrels to market deteriorated sharply. Regional production rose by 2.5 million bpd to 23.9 million bpd, but remained 8.3 million bpd below pre-conflict levels.