The West Asia conflict has tightened oil markets, with disruptions in key supply routes pushing up prices and freight rates as well as accelerating inventory drawdowns. In the near term, oil markets are likely to remain volatile as geopolitical tensions continue to influence supply expectations, freight costs and risk premiums, with renewed hostilities adding uncertainty to supply stability.

• 2026 YTD reflects tightening in the oil market amid the West Asia conflict, with global oil production declining by 10% from 108.7 mbd in February 2026 to 97.5 mbd in June 2026.
  
• Industry debt levels are likely to remain stable in FY2027 and, accordingly, the leverage and debt coverage metrics are also expected to be healthy.
  

Exhibit: Global liquid fuels demand-supply (mbd)