Global 2026 oil supply gap to deepen on delayed return of normal Gulf flows, IEA says

11-09-2026 17:05 HKT

An aerial photo taken on April 4, 2026 shows the Geelong Oil Refinery, one of two oil refineries remaining in Australia. Demand for crude oil will likely see the biggest slump in the second quarter since the Covid pandemic slammed the global economy in 2020, the International Energy Agency warned on April 14, 2026. (Photo by William WEST / AFP)

Global oil supply and demand will fall further than previously thought this year, the International Energy Agency said on Friday, as a lack of progress in ending the Iran war delays the return of normal Middle East flows into 2027 and sends fuel prices soaring.

"Inventories have so far played a crucial role in balancing the market," the IEA, which advises industrialised countries, said in a monthly report.

"With buffers shrinking and the global refining system stretched to the limit, the need for progress in resolving the conflict in the Middle East – and the Russia-Ukraine war, which is now in its fifth year – is greater than ever to avoid further market tightening."

Reuters

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