MUSCAT : In its latest monthly oil market assessment, the IEA lowered its supply forecast for the remainder of the year amid continued uncertainty over key maritime energy routes, including the Strait of Hormuz and the Bab al-Mandeb Strait. The agency has identified the restoration of normal flows through Hormuz as a crucial factor in easing pressure on global energy supplies.
“With an agreement enabling the reopening of Hormuz and unhindered transit through the Bab al-Mandeb Strait still elusive, we have again lowered supply estimates for the rest of the year,” the IEA said.
The agency now expects global oil supply to decline by 4.3 million bpd, a steeper fall than the 3.7 million bpd reduction projected in its July report.
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As a result, total global oil supply is forecast to drop to 102.02 million bpd, marking the IEA’s lowest projection for the year so far.
The downward revision comes as the continuing conflict disrupts production and shipping routes across the Middle East. The IEA has previously described the restrictions around the Strait of Hormuz as an unprecedented shock to global oil supplies, with flows through the crucial waterway falling dramatically from pre-conflict levels.
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