Oil shortage deepens with deficit doubling
The International Energy Agency has confirmed that the global oil market is currently experiencing unexpected supply pressures, with a widening shortfall reaching 1.8 million barrels per day in the current quarter. This is the largest seasonal deficit in five years, expected to last until 2026, driven by military escalation and maritime disruptions in the region. The rise in fuel prices has led to a roughly 50% reduction in global demand, recording a decrease of 1.6 million barrels per day — the largest decline since the COVID-19 pandemic in 2020. Despite these tensions, Saudi Arabia and the UAE have managed to rely on alternative pipelines and shuttle tankers through the Strait of Hormuz to mitigate losses. Meanwhile, China has replaced over 1.5 million barrels of its daily oil consumption by expanding its electric vehicle fleet. Global inventories are expected to recover next year as supply surplus returns, potentially reaching 4.6 million barrels per day by 2027, highlighting the importance of rebuilding strategic reserves in major countries.
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