Beijing, July 10 (Xinhua) -- The International Energy Agency said on the 10th that with the recovery of oil transportation in the Strait of Hormuz in June and the decline in international oil prices, global oil demand has begun to "recover". However, the recent exchange of fire between the United States and Iran has cast a shadow over the market outlook.

According to the monthly oil market report released by the International Energy Agency on the same day, global oil consumption has rebounded from its May low, and "global oil demand is recovering". The organization previously predicted that due to the impact of the Iran conflict, the daily global oil demand would decrease by about 1.1 million barrels year-on-year this year. The latest report has adjusted this expected decline to 1 million barrels.

This is a fuel sign taken on May 19th at a gas station in Johannesburg, South Africa. Photo by Xinhua News Agency reporter Chen Wei

The report states that with the initial recovery of oil transportation in the Strait of Hormuz, oil production in the Gulf region has partially rebounded. In June, the daily global oil supply increased by 4.1 million barrels, reaching 98.8 million barrels, but still about 9.4 million barrels lower than before the outbreak of the Iran conflict. The daily average oil exports in the Gulf region increased by 6.5 million barrels in June, rising to 16.1 million barrels, but still far below the level of about 24 million barrels per day before the outbreak of the war.

However, the International Energy Agency stated that despite the significant drop in international oil prices in June, the recent exchange of fire between the United States and Iran has cast a shadow over the market outlook, and "reaching a lasting peace agreement is a necessary condition for the oil market to return to normal".

The International Energy Agency said that if the new round of conflict between the United States and Iran can be quickly resolved, global oil supply is expected to continue to improve. If oil transportation in the Strait of Hormuz continues to recover, the global daily oil supply is expected to increase by 7.5 million barrels by 2027. (Gao Bingbing)

Editor: Wang Xiaowei

(Author Xinhua Finance)