London: The International Energy Agency said on Wednesday that the global oil market would gradually recover from the effects of the closure of the Strait of Hormuz before facing a significant surplus in 2027.
In its monthly oil market report released on Wednesday, the agency added, "If the agreement between Iran and the United States holds, exports and production from the Gulf region are expected to recover gradually."
The agency also projected that the oil market would see a substantial surplus next year, with global oil supply expected to rise by eight million barrels per day, while demand is forecast to increase by only two million barrels per day.
The agency noted, "This situation could provide a welcome period of relief for the market and an opportunity to refill depleted storage or build new strategic reserves, as countries adjust their energy strategies and policies in response to the crisis."
