Photo caption: Oil tankers pass through the Strait of Hormuz, December 21, 2018. REUTERS/Hamad I Mohammed/File Photo Purchase Licensing Rights
Global oil supply will fall by 4.3 million barrels per day, or around 4%, this year, the International Energy Agency said in its monthly oil market report on Wednesday, as renewed hostilities in the Middle East since July are set to plunge the world deeper into an oil-market deficit.
“With an agreement enabling the reopening of Hormuz and unhindered transit through the Bab el-Mandeb Strait still elusive, we have again lowered supply estimates for the rest of the year,” the IEA said.
According to Reuters report, the 4.3 million bpd supply drop compares with the 3.7 million bpd forecast in the IEA’s July report, and will take total supply to the IEA’s lowest forecast yet for this year at 102.02 million bpd.
