Global Oil Supply Set to Fall 4% Amid Middle East Tensions

The International Energy Agency has forecast a 4% drop in global oil supply this year despite increased output from non-OPEC producers including the United States, Canada, and Guyana. Rising tensions in West Asia have driven Brent crude prices above $100 a barrel, rattling stock markets in early trade, industry experts said.

The IEA expects global oil supply to decline by 4.3 million barrels per day this year. This comes even as countries outside the Organization of the Petroleum Exporting Countries have boosted their production. Market participants are factoring in a prolonged conflict in the Middle East and the risk that recent military strikes could disrupt oil flows from the region.

One key concern is whether attacks on oil tankers will reduce ship-to-ship transfers in the Gulf of Oman. These transfers have so far played a crucial role in supplying oil to global markets and keeping prices in check. Analysts warn that the volume of disruptions is likely to increase, further tightening supply.

The escalation in West Asia has unsettled stock markets, with Brent crude prices crossing the $100 mark. This surge reflects fears over the stability of oil shipments and the potential for sustained conflict to impact global energy supplies.