Oil Prices Soar Amid Disrupted Middle Eastern Production

Global oil supply has fallen sharply as tensions between the US and Iran continue to disrupt Middle Eastern production. According to the International Energy Agency (IEA), global oil output dropped by 1.6 million barrels per day in August, reaching 100.1 million barrels per day.

The majority of this decline came from the Gulf region, where over 10 million barrels per day of production remains shut due to security concerns.

As a result, oil prices have surged, with North Sea Dated crude averaging $91 per barrel in August and reaching as high as $113.48 on September 9.

The IEA has reduced its forecast for global oil supply, predicting an average production of 100.7 million barrels per day in 2026, a decline of 5.7 million barrels per day from last year.