MUSCAT : The IEA, in its latest oil market report, projected that global oil supply could decline by 3.9 million barrels per day throughout 2026 due to disruptions linked to the conflict in the Middle East.
While the agency also forecast a drop in global oil demand by 420,000 barrels per day this year, the expected fall in supply is significantly larger, raising concerns over tightening markets and future price volatility.
“More than 10 weeks after the war in the Middle East began, mounting supply losses from the Strait of Hormuz are depleting global oil inventories at a record pace,” the IEA stated in its report.
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The agency further warned that importing countries are facing “unprecedented disruptions” to Middle Eastern oil supplies, leading to rapidly shrinking inventory buffers worldwide.
“The world is drawing oil inventories at a record pace as importing countries confront unprecedented disruptions to Middle Eastern supplies. Rapidly shrinking buffers amid continued disruptions may herald future price spikes ahead,” the report added.
