IEA Warns Commercial Oil Stocks Falling Rapidly After Strait Closure

The world's commercial oil inventories are being depleted at an unprecedented rate, with only several weeks of supply remaining in some regions, the head of the International Energy Agency warned on Monday. The stark assessment from IEA Executive Director Fatih Birol highlights the severe and ongoing strain on global energy supplies caused by a conflict in the Middle East that has effectively closed the vital Strait of Hormuz to routine shipping.

Birol delivered the warning on the sidelines of a Group of Seven finance ministers meeting in Paris. He stated that commercial stockpiles are declining rapidly and emphasized that while releases from government-controlled strategic petroleum reserves have added significant supply, those buffers are not endless. The coordinated release by IEA member countries has injected approximately 2.5 million barrels per day into the market, with about 164 million barrels withdrawn by early May as part of a historic 400-million-barrel emergency action.

The crisis stems from a conflict that began in late February, which has severely disrupted oil production and transit from the Middle East. The closure of the Strait of Hormuz, a chokepoint for...