Lates News

The International Energy Agency (IEA) has stated that as the conflict in Iran escalates again, even though the impact of high oil prices on demand is further intensifying, the decline in global oil stocks this quarter will still reach more than double the previous estimates. In its monthly report, the IEA noted that the global oil market will face a daily supply gap of 1.8 million barrels due to "a new round of hostilities and disruptions in shipping" hindering the recovery of production, with the supply gap potentially reaching its highest level in five years by 2026. The IEA has nearly raised its forecast for this year's global oil demand decline by 50% to 1.6 million barrels per day, while global inventories are tightening again. This will be the largest annual average demand decline since the COVID-19 pandemic began in 2020. The IEA expects that as the oil market shifts back to an oversupply situation, the reduced global stocks will be replenished next year. The agency noted that member countries like the United States, Japan, and Germany need to restock their emergency oil reserves after announcing record releases of oil reserves in March.