IEA expects global oil supply to decline in 2026

The International Energy Agency (IEA) has raised its forecast for global oil supply in 2026 by 2.5 mln barrels per day (bpd) compared with its previous report, according to the organization’s latest report. As a result, global oil supply this year is expected to fall by 4 mln bpd to 102.2 mln bpd.

The IEA noted that since the beginning of the Middle East conflict, global oil supplies have dropped by 12.8 mln bpd. In April alone, supplies declined by 1.8 mln bpd to 95.1 mln bpd due to the continued closure of the Strait of Hormuz.

The IEA expects global oil supplies to decline by a further 530,000 bpd in May ahead of a gradual recovery in the third quarter of this year.