IEA data shows global oil inventories dropped by 69 million barrels in July amid supply disruptions and lower demand forecasts for 2026.
Crude oil prices rose as global supply tightened in July, driven by geopolitical disruptions and high fuel costs. The IEA reported a sharp decline in observed inventories, down 69 million barrels, while Brent and WTI prices moved higher amid backwardation and tighter product markets.
Demand forecasts for 2026 were revised lower by 1.6 million barrels per day, 510k barrels below last month’s estimate, due to the closure of the Strait of Hormuz and elevated prices. Supply reached 101.5 million barrels per day in July but remained below year-earlier levels, with Gulf output still constrained.
Refinery throughputs increased to 80.9 million barrels per day but stayed nearly 5 million barrels below 2023 levels, with further cuts expected in Q3. The IEA flagged tighter global balances as a key driver of price movements.