IEA chief warns that commercial oil reserves could run out in a few weeks — Reuters
Commercial oil reserves on the global market could be completely depleted in just a few weeks due to a rapid decline in their volumes.
This was stated by Fatih Birol, Executive Director of the International Energy Agency (IEA), at a meeting of G7 finance ministers, according to Reuters.
Despite the alarming forecasts, market participants are currently finding alternative ways to offset the supply-demand imbalance that has arisen amid the large-scale war in the Middle East.
The significant decline in oil stocks in commercial storage facilities is linked to the start of the active warm season in the Northern Hemisphere.
The simultaneous start of the large-scale planting season and the summer tourist season traditionally triggers a sharp increase in the consumption of petroleum products.
The market needs significantly more diesel fuel, automotive gasoline, jet fuel, and mineral fertilizers for the agricultural sector.
The head of the relevant agency, Fatih Birol, urged the international community not to succumb to the illusion of complete security due to temporary financial maneuvers.
Governmental price stabilization tools have clear technical and time-based limitations that do not solve the problem of global raw material shortages.
To stabilize the energy system and curb price spikes, the agency’s member countries have taken unprecedented steps.
In March, the 32 IEA member countries agreed to sell a record 400 million barrels; of these, 164 million had already entered the market by May 8.
These interventions helped somewhat mitigate the initial blow to global logistics caused by geopolitical instability.
India has been buying and will continue to buy oil from Russia regardless of U.S. sanctions
Oil prices have surged due to Trump’s statements and the threat to shipping near Iran
