Energy Agency Predicts Oil Shortages Worsen in 2026

The International Energy Agency expects the global oil supply shortage to worsen in 2026, with both supply and demand decreasing more than previously anticipated, due to the lack of a resolution to the US-Iran conflict and delays in the return of oil flows from the Middle East until 2027. Estimates indicate a daily decline of 2.5 million barrels, compared to an earlier decline of 1.6 million barrels. Additionally, global oil consumption is projected to reach around 102.44 million barrels per day in 2026, down from previous forecasts. The conflict with Iran and tensions in the Strait of Hormuz are leading to increased demand for coal and a reduction in liquefied natural gas supplies, resulting in higher coal prices and further challenges for energy markets.

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