IEA warns global oil refining system ‘stretched to the limit’ as Iran, Ukraine wars tighten market

An employee looks out over oil transport pipelines on the Arabian Sea in Saudi Aramco's Ras Tanura oil refinery and oil terminal in Ras Tanura, Saudi Arabia.Simon Dawson | Bloomberg | Getty ImagesThe Iran and Ukraine wars are adding pressure to an oil refining system "stretched to the limit," the International Energy Agency warned Friday, as it once again cut its global supply and demand forecasts amid the ongoing energy shock.In its closely monitored monthly oil report, the IEA further cut its global oil supply and demand projections for the remainder of the year, warning that a full recovery in flows from Middle East producers has been deferred until next year as the Iran war drags on.The energy watchdog said it expects world oil supply to decline by 5.7 million barrels per day (bpd) in 2026, about 6% lower than 2025. The IEA previously forecast an annual drop of 4% in its last update in August.Global oil demand, meanwhile, is seen falling more than expected as an impasse in diplomatic talks between the U.S. and Iran delays the prospect of a truce, amid renewed attacks in both the Strait of Hormuz and the Red Sea's Bab el-Mandeb choke point.IEA significantly cuts its global oil d...