Oil Supply Rises, But Tensions Threaten Recovery

The International Energy Agency (IEA) reported that global oil supply increased by 2.4 million barrels per day in July to 101.5 million bpd, driven by higher output from OPEC+ countries.

OPEC+ production rose by 1.8 million bpd to 40.75 million bpd during the month, with Saudi Arabia's production increasing by around 900,000 bpd to 8.24 million bpd and Russia's output rising by around 100,000 bpd to 8.76 million bpd.

Supply from countries outside OPEC+ also increased, driven by a recovery in Qatar's oil supply following a de-escalation in tensions between the US and Iran.

However, renewed tensions toward the end of the month threatened the recovery in Gulf oil output, with the IEA revising down its global oil demand forecast for this year by 510,000 bpd from last month's report.