Commodities
IEA Slashes Oil Supply Forecast Amid Ongoing Middle Eastern Conflict
The International Energy Agency (IEA) has reduced its forecast for global oil supply in 2026 by 4.3 million barrels per day, citing renewed hostilities in the Middle East as a major factor.
According to the IEA's monthly oil market report, the Strait of Hormuz shutdown, US blockade of Iranian exports, attacks within the Bab el-Mandeb Strait, and reduced Kazakh CPC Blend exports have all contributed to the decline in supply.
The agency now expects global oil supply to fall by 1.27 million barrels per day below demand this year, widening from an 860,000 bpd deficit implied in its July report.