IEA sees further decline in global oil supply

The IEA expects global oil production to recover by 8 million bpd in 2027.

The International Energy Agency (IEA) expects global oil demand to fall by 2.5 million barrels per day this year, 940,000 bpd more than previously forecast, as the conflict in the Middle East continues.

In its monthly report issued on Friday, the agency said global oil production fell by 1.6 million bpd month-on-month (MoM) to 100.1 million bpd in August.

The IEA expects global supply to decline by 5.7 million bpd to 100.7 million bpd in 2026, as the ongoing conflict delays the recovery in Middle East production until next year.

The agency estimates global production will recover by 8 million bpd in 2027.

Global oil inventories fell by 95 million barrels in August, bringing cumulative draws since February to 507 million barrels, or an average of 2.8 million bpd.