IEA is warning the oil market could swing from crisis to massive surplus by 2027

Supply is set to surge by 8 million barrels per day next year as Middle East output rebounds, swamping a modest demand recovery

Credit: Tom Fisk /  Pexels

The International Energy Agency is forecasting a significant oil supply surplus in 2027 as Middle East production recovers from the disruption caused by the closure of the Strait of Hormuz, with global supply expected to outpace demand by more than 5 million barrels per day.

According to the IEA's June oil market report, consumption is expected to reach 105.3 million barrels per day in 2027 — a gain of 2 million barrels per day — while output climbs by roughly 8 million barrels per day to hit 110........

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