IEA Projects 4.3 Million Barrels Daily Crude Oil Supply Cut This Year
Summary
The International Energy Agency has projected that global crude oil supply will fall by 4.3 million barrels per day this year, citing disruptions in key shipping routes and tensions in West Asia. The forecast is the agency’s lowest so far and signals a deeper supply shortfall in the oil market.
Key Points
- The IEA says global crude oil supply is expected to drop by 4.3 million barrels per day this year, about 4 percent of total world supply.
- Its latest forecast is lower than July’s estimate of a 3.7 million barrel-per-day decline, with total supply now seen at 102.02 million barrels per day.
- The agency blames uncertainty over the Strait of Hormuz and Bab-el-Mandeb and disruptions from ongoing tensions in West Asia.
- The supply shortfall could worsen further if trade-route disruptions continue.
