London, June 17 (Petra) -- The International Energy Agency (IEA) projected on Wednesday that the global oil market will gradually recover from the disruptions caused by the closure of the Strait of Hormuz before shifting into a major supply surplus in 2027.

In its monthly oil market report published on its official website, the agency noted, "If the agreement between Iran and the United States holds, exports and production from the Gulf region are expected to see a gradual recovery." The agency added that the oil market will experience a substantial supply overhang next year. Global oil supply is forecasted to surge by 8 million barrels per day (bpd), while global demand is projected to rise by only 2 million bpd.

This looming imbalance could provide a welcome respite for the market, offering nations an opportunity to replenish depleted inventories or build new strategic reserves while countries review their energy policies and strategies in response to the crisis, the IEA stated.

//Petra// AF