The International Energy Agency (IEA) reported that global oil stocks are declining at a record pace amid severe supply disruptions and a downward revision of the supply-demand balance forecast for 2026.
The agency now expects global oil supply to fall short of demand by 1.78 million barrels per day (bpd) in 2026, compared to previous estimates that projected a surplus of 410,000 bpd.
It also anticipates a decline in global oil supply of approximately 3.9 million bpd in 2026, compared to previous forecasts that indicated a decrease of 1.5 million bpd.
Conversely, the agency lowered its forecast for global oil demand to 420,000 bpd in 2026, impacted by the repercussions of the war with Iran, compared to previous estimates that projected a decline of approximately 80,000 bpd.
The IEA noted that global supply losses related to the closure of the Strait of Hormuz are estimated at approximately 12.8 million bpd since February. It added that the oil market will continue to suffer from a severe supply shortage until October, even if the conflict ends next month. (EIR)
