The International Energy Agency (IEA) released its May Oil Market Report detailing a global energy crisis. Restrictions in the Strait of Hormuz have shut in over 14 million barrels per day of oil production. Cumulative supply losses from Gulf producers now exceed 1 billion barrels.
The IEA characterizes the current situation as an unprecedented supply shock. Global oil demand is now projected to contract by 420,000 barrels per day in 2026. This forecast represents a sharp reversal from previous expectations of demand growth.
Brent crude prices currently fluctuate between $106 and $110 per barrel. The data confirms severe market tightness resulting from ongoing geopolitical turmoil.