IEA expects global oil inventories to rebuild in 2027

Oil drilling rigs

The International Energy Agency (IEA) expects depleted global oil inventories to be replenished in 2027, amid expectations of a surplus in the oil market by the end of 2026.

In its monthly report issued today, Aug. 12, the agency said observed global oil inventories fell by around 69 million barrels in July, as disruptions to oil exports from the Middle East and the Caspian region resumed.

Onshore inventories declined by 6 million barrels last month, as the pace of withdrawals from the IEA’s emergency oil reserves slowed, despite continued declines in China’s crude inventories.

Observed global oil inventories stood at just under 7.9 billion barrels at the end of July, down 410 million barrels since the outbreak of the Middle East war in late February, equivalent to an average daily draw of around 2.7 million barrels over the period.