IEA: War in the Middle East causes record oil shortage

According to the International Energy Agency (IEA), the war in the Middle East has caused the greatest disruption to oil supplies in history.

In its monthly report, the agency said global supplies could fall by about eight million barrels per day in March. The main reason is the blockade of the Strait of Hormuz off the Iranian coast, which has been in place since the start of US and Israeli air strikes on Iran on February 28.

At the same time, Persian Gulf countries including Iraq, Qatar, Kuwait, the United Arab Emirates and Saudi Arabia have reduced production by at least 10 million barrels per day, which represents almost a tenth of global demand.

The IEA warns that without a rapid resumption of shipping, the shortfall could increase further. It could take weeks or months to restore production.

The agency has therefore agreed to release a record 400 million barrels of oil from the strategic reserves of member countries, with the US providing the largest share.

Market tensions are also reflected in prices. Brent crude, which rose to $119.5 per barrel at the beginning of the week, climbed more than 6 per cent on Thursday and traded just below $98.

(reuters, lud)