The International Energy Agency and the Texas Independent Producers & Royalty Owners Association say sustained high oil prices would not be as beneficial as might be expected.

The Paris, France-based IEA said recently that global oil demand will drop by 2.5 million barrels per day through 2026.

“The prolonged conflict and diplomatic impasse have severely constrained energy markets,” an IEA spokesman said. “Global supply is down 5.7 million barrels daily and the demand decline deepened to 2.5 million barrels daily.”

The organization said Middle East flow recovery will be delayed until 2027 and that global inventories have dropped by 507 million barrels.

“Crude oil disruptions have hit refined fuels and processing systems the hardest and refining infrastructure has been stretched to its absolute limits,” the spokesman said. “Severe petrochemical feedstock shortages are ongoing.”

The IEA also predicts the accelerated adoption of clean technology and electric vehicles.

TIPRO President Ed Longanecker noted that Brent crude traded above $107 per barrel last week, its highest level since May, and West Texas Intermediate crude traded above $103.

“Saudi Arabia shut down its east-west pipeline on Sept. 11 after drone attacks launched from Iraqi territory had struck pumping stations the day before,” Longanecker said last week. “No group has formally claimed the attack and Iraq’s government has opened its own investigation.

“Iran has spent two decades building exactly this kind of proxy network in Iraq, Yemen and Lebanon precisely so that attacks like this one carry deniability while still advancing Tehran’s strategic aims.”

Longanecker said that fits a coordinated regional campaign against Saudi Arabia’s two remaining routes around the constrained Strait of Hormuz the same week that Houthi forces seized the Red Sea port of Mocha and Perim Island, tightening pressure on the Bab el-Mandeb Strait from the opposite direction.

Read the full article by Bob Campbell on Oaoa.com