Oil falls as International Energy Agency forecasts supply glut next year after U.S.-Iran deal
Imen Ben Youssef | Afp | Getty Images
Oil prices fell Thursday after President Donald Trump reportedly While he signed a deal with his Iranian counterpart Masoud Pezeshkian to end the war in the Middle East, the International Energy Agency signaled there would be a supply glut next year.
International comparison Brent crude oil August futures contracts fell 1.13% to $78.65 per barrel. WE West Texas Intermediate Futures It fell 1.26% to $75.82 per barrel in July.
According to Reuters, Trump also overshadowed the situation by telling reporters that he could continue attacks on Iran if Tehran does not fulfill its commitments.
“If they violate the agreement, we will bomb them,” Trump reportedly said at the press conference. “I don’t want them to do this. I want them to honor the agreement.”
The IEA expects a permanent solution to the conflict to lead to a significant increase in supply volumes and a massive oil supply next year.
According to the latest monthly oil market report, global supply is expected to fall by an average of 3.9 million barrels per day to 102.4 barrels per day in 2026, before rising to 110.3 barrels per day next year.
“Our first look at 2027 balances shows a significant overhang that will emerge next year,” the IEA added.
While lower oil prices make it less likely that energy prices will cause a broader inflationary problem, that’s not “entirely obvious,” according to a report by New York Life Investment Management. “Oil remains above pre-conflict levels, shipping will take time to normalize, and stocks and strategic reserves still need to be replenished,” the report said. The statement was included.
—CNBC’s Hugh Leask contributed to the report.
