IEA cuts 2024 global oil supply forecast amid Middle East tensions

The International Energy Agency said global oil supplies are expected to fall by 4.3 million barrels per day, or about 4 percent, this year, as renewed fighting in the Middle East since July is likely to further widen the global oil market deficit.

In its monthly oil market report released on Wednesday, the agency added: "With no agreement yet to reopen the Strait of Hormuz and ensure unobstructed passage through the Bab al-Mandab Strait, we have once again lowered our supply estimates for the remainder of the year."

According to Reuters, the IEA expects the energy market to post its largest deficit in five years in 2024, with global oil inventories in the third quarter set to fall by more than twice previous forecasts.

The agency said the reduction amounts to 4.3 million barrels per day, compared to its July report forecast of 3.7 million barrels per day, bringing total supply to the lowest level projected by the agency so far this year at 102.02 million barrels per day.