The International Energy Agency (IEA) said on Wednesday that, more than 10 weeks into the Middle East conflict, the world’s oil reserves are being depleted at a record rate due to supply constraints stemming from bottlenecks in the Strait of Hormuz.
Global oil stockpiles decreased by 129 million barrels in March and an additional 117 million barrels in April as a result of US and Israeli assaults on Iran and the ensuing disruption to Gulf supplies, according to preliminary IEA statistics. OECD nations saw the biggest drops, with on-land inventories falling by 146 million barrels. Non-OECD economies saw a 24-million-barrel decline in visible stocks.
The organization described the situation as an “unprecedented supply shock,” stating that cumulative losses from Gulf producers’ oil supplies had already surpassed one billion barrels, with over 14 million barrels per day being unable to leave the region.
Uncertainty surrounding diplomatic efforts by the US and Iran to reopen the Strait and end the dispute has caused oil markets to swing dramatically. A benchmark for short-term physical shipping, the price of North Sea Dated crude fell from a top of $144 a barrel to less than $100 before rising once more.
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