New Delhi, June 17 -- Global crude oil market is expected to tighten this year before supplies turn into a surplus in 2027, as the US and Iran move towards a peace deal in West Asia that could reopen the crucial Strait of Hormuz.

Global crude oil supply is set to fall by 3.9 million barrels per day (bpd) to 102.4 million bpd this year amid trade disruptions due to the West Asia war, before rebounding by 8 million bpd next year, the International Energy Agency (IEA) said on Wednesday.

An oversupply is expected in 2027 as global oil demand is projected to rise by a relatively modest 2 million bpd to 105.3 million bpd, IEA said in its monthly oil market outlook for June 2026 released on Wednesday.

"Our first look at 2027 balances shows a ...