Commodities
Oil Supply Gap Widens Amid Ongoing Conflict in the Middle East
The International Energy Agency (IEA) has warned that global oil supply and demand will continue to fall this year, with the agency expecting a 5.7 million barrel per day decline in 2026.
This represents a 6% drop from previous projections, as the ongoing Iran war continues to disrupt normal Middle East flows, sending fuel prices soaring.
The IEA reports that inventories have played a crucial role in balancing the market so far, but with buffers shrinking and the global refining system stretched to the limit, progress in resolving conflicts is needed to avoid further market tightening.