IEA cuts global oil supply outlook

The International Energy Agency has cut its global oil supply forecast for this year, citing "the protracted US-Iran diplomatic standoff."

An IEA report released on Friday says the world oil supply is projected to fall to 100.7 million barrels per day in 2026. That's down 5.7 million barrels a day from the previous year, and 1.3 million barrels a day lower than its estimate as of August.

The report says the US-Iran standoff and renewed attacks in both the Persian Gulf and the Red Sea continue to hamper the normalization of oil flows. The Red Sea has been serving as an alternative route for the Strait of Hormuz.

The IEA points out that oil production of more than 10 million barrels per day has been suspended in Gulf countries. The agency says an expected full recovery in supplies from oil-producing countries in the Middle East is now deferred until next year.

The agency says progress toward resolving the Middle East conflict is needed more than ever "to avoid further market tightening and demand destruction."

On the New York crude oil market on Friday, the benchmark WTI futures rose to the mid-104-dollar range per barrel at one point, hitting the highest level in about four months since May.