The International Energy Agency (IEA) warns global oil inventories are depleting at a record pace. The ongoing Middle East conflict and the Strait of Hormuz shutdown drive the shortage. The agency expects the market to remain severely undersupplied until at least October 2026.
This event marks the largest supply disruption in history. The IEA slashed its global demand projections for the third consecutive month. World oil consumption will plunge by 2.45 million barrels a day this quarter.
This represents the steepest demand drop since the 2020 pandemic. Supply losses continue to outpace demand destruction, keeping the market fundamentally tight. Brent crude held recent gains to trade above $107 a barrel following the report.