IEA Warns Global Oil Supplies Could Last Only Weeks

The director of the International Energy Agency (IEA), Fatih Birol, warned that commercial oil supplies are rapidly dwindling and may last only a few weeks because of the war with Iran and the closure of the Strait of Hormuz.

Speaking during a meeting of G7 finance ministers in Paris, Birol said the release of strategic reserves has added about 2.5 million barrels of oil per day to the market. However, he warned that these reserves “are not infinite”.

According to the IEA chief, the situation is likely to worsen with the start of the spring planting season and the summer travel period in the northern hemisphere, which will increase demand for diesel, fertilizer, aviation fuel and gasoline.

Last week, the IEA said global oil supplies are expected to fall short of demand this year because the conflict with Iran has severely disrupted production in the Middle East. The agency added that crude inventories declined by a record 246 million barrels in March and April.

According to the IEA’s updated estimate, global oil supplies will decline by about 3.9 million barrels per day in 2026.

(reuters, bak)