Commodities
IEA Slashes Oil Supply Forecast Amid Ongoing Middle East Conflict
The International Energy Agency (IEA) has revised its forecast for global oil supply in 2026, predicting a decrease of 4.3 million barrels per day due to ongoing hostilities in the Middle East.
The Strait of Hormuz shutdown, US blockade of Iranian exports, attacks within the Bab el-Mandeb Strait, and reduced Kazakh CPC Blend exports are contributing factors to this decline.
The IEA expects global oil supply to fall short of demand by 1.27 million barrels per day this year, widening from a deficit of 860,000 bpd in July's forecast.