EIA Sees 600,000 Bpd of Middle East Oil Still Offline by End-2027

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The US Energy Information Administration forecasts that 600,000 barrels per day of Middle East oil production will remain offline through the end of 2027 due to the prolonged closure of the Strait of Hormuz amid rising regional tensions. This supply disruption has led to increased third-quarter oil price estimates.

The longer-than-expected closure of the Strait of Hormuz means that some part of the oil production in the Middle East will remain shut in through the end of next year, the U.S. Energy Information Administration (EIA) said in its latest Short-Term Energy Outlook (STEO) this week. The renewed tensions in the Middle East that began in late July and have been simmering so far in August will keep traffic at Hormuz severely constrained through this month, which has prompted the EIA to hike its third-quarter oil price forecasts as lower supply would…