IEA Doubles Q3 Global Oil Inventory Drawdown Forecast

Key Facts

The International Energy Agency projects global oil inventories will contract in the third quarter at twice the previously estimated pace. Foreign Policy Journal reported that this revision is driven by supply disruptions stemming from the conflict between the United States and Iran, providing structural support for crude prices.

Data showed that Saudi Arabia’s crude output fell to 6.238 million barrels per day in August, marking its lowest production level since 1990. While US crude production rose 0.6% week-over-week to a record 13.947 million barrels per day for the week ending September 4, 2026, the gain has done little to ease supply anxieties as Iran signals a readiness to escalate counterstrikes.