Shafaq News- Paris
The International Energy Agency (IEA) said on Wednesday that the global oil market is expected to gradually recover from the disruption caused by the closure of the Strait of Hormuz, while warning of a significant supply surplus in 2027.
In its monthly oil market report, the Paris-based agency said the temporary agreement between the United States and Iran, which includes reopening the Strait of Hormuz and lifting US restrictions on Iranian ports, would help restore Gulf oil flows.
The IEA estimated that the recent conflict disrupted more than 14 million barrels per day (bpd) of Middle Eastern oil production, adding that Iranian exports are expected to fully resume once US restrictions are lifted.
The agency's preliminary outlook for 2027 projects global oil supply growth of around 8 million bpd, far outpacing expected demand growth of less than 2 million bpd.
According to the report, oil flows through the Strait of Hormuz began to recover in early June, driven by an increase in ship-to-ship transfers in the Gulf of Oman, lifting total Middle East supplies to around 12 million bpd from 9.6 million bpd in May.
