Global oil demand began to recover last month, according to the latest report from the International Energy Agency (IEA). Oil shipments through the Strait of Hormuz started moving again in June after the United States and Iran reached a fragile, temporary peace deal to reopen the vital waterway.
The IEA stated that the global oil supply jumped by 4.1 million barrels per day in June, reaching a total of 98.8 million barrels per day. While reopening the strait helped boost production in the Gulf region, global output is still about 9.4 million barrels per day lower than it was before the war began in late February.
The United Arab Emirates pumped a record amount of oil in June, averaging 4.1 million barrels per day and beating its previous record from 2020. Total oil exports from the Gulf region rose to 16.1 million barrels per day. The IEA called this a big leap forward, but noted it is still well below pre-war averages.
While global supply improved to 102.6 million barrels per day in June, the future remains uncertain. Fighting between the US and Iran started up again this week. Following new attacks on ships, US President Donald Trump stated that the peace deal is over, a conflict that the IEA warns is now clouding the energy market’s outlook.
@anp | NEWS BRAINPORT
