IEA Warns of Widening Oil Supply Gap as Saudi Output Plunges to 3-Decade Low Amid Middle East Conflict

The International Energy Agency (IEA) reported that global oil supply and demand are expected to fall further than previously anticipated this year, with world supply projected to decline by 5.7 million barrels per day (6%) in 2026. This comes as Saudi Arabia's crude oil production plummeted to 6 million barrels per day in August, its lowest level in over three decades, due to attacks disrupting facilities and shipping routes in the Middle East. Crude oil prices have risen towards $110 a barrel.