New Delhi, May 4 -- A supply deficit of around 4.8 million barrels per day (mbpd) in the global oil market is expected to be absorbed through demand destruction amid ongoing disruptions in West Asia, according to a report by PL Capital.

The report said the conflict in West Asia has tightened global oil supply, leading to higher prices and increased volatility. The disruption of crude flows through the Strait of Hormuz has resulted in a supply loss of nearly 15 mbpd.

However, part of this loss has been offset by strategic releases of about 400 million barrels (mb) by the International Energy Agency (IEA) and the use of alternative export routes bypassing Hormuz, which account for around 6.2 mbpd. Despite these measures, a gap of about 4....