IEA Warns Of Rapid Decline In Global Oil Stocks Amid Gulf Supply Disruptions

The International Energy Agency (IEA) has warned that global commercial oil inventories are declining at a “very fast” pace, as disruptions in Gulf supply persist due to ongoing tensions in the Middle East, despite coordinated releases of strategic reserves by several governments.

The warning comes amid rising concerns over potential fuel shortages ahead of the peak summer travel season in the northern hemisphere, with airlines cautioning that jet fuel supplies could tighten within weeks if the disruptions continue.

Speaking on Monday ahead of a meeting of G7 finance ministers in Paris, IEA Executive Director Fatih Birol said global stockpiles were being depleted rapidly.

“The commercial inventories are declining… I think it’s depleting very fast now,” Birol said, noting that while some buffer stocks remain, the situation is tightening.

“We have still several weeks but we should be aware of the fact that they’re declining rapidly,” he added, warning that global reserves are “not endless”.

The developments are linked to escalating tensions in the Middle East, where disruptions to tanker movements through the Strait of Hormuz have affected global oil and gas flows, contributing to higher energy prices.

The IEA said member countries have been drawing down both commercial inventories and strategic reserves at what it described as a “record pace” as diplomatic efforts to de-escalate the conflict continue.

The agency’s warning adds to growing uncertainty in global energy markets, with analysts watching closely for further supply shocks that could impact inflation and transport costs worldwide.