The International Energy Agency (IEA) announced Friday a projected decline in global oil supply and demand this year, exceeding prior estimates. This downturn stems from stalled progress in resolving the US-Iran conflict, delaying normal Middle East oil flows until 2027,
thus contributing to rising fuel prices. The Agency, affiliated with the Organization for Economic Cooperation and Development (OECD), now forecasts an annual decrease of 2.5 million barrels per day. This figure significantly surpasses its August estimates, which indicated a reduction of
1.6 million barrels daily. In its monthly report, the IEA affirmed the crucial role inventories have played in market balance. The International Energy Agency, advisor to industrial nations, added that shrinking strategic reserves and global refining capacity nearing its peak necessitate
urgent progress in resolving conflicts, especially in the Middle East and the Russia-Ukraine war, now in its fifth year, to avert deeper supply tightness.
