International Energy Agency Issues Warning on Potential Oil Inventory Decline

Speaking at the Middle East Oil & Gas Conference in London, Toril Bosoni, the International Energy Agency’s official representative, cautioned that global oil inventories might reach historically low levels ahead of the peak summer demand period if current drawdown rates persist.

Bosoni highlighted that the reopening of the Strait of Hormuz could take six to eight months, even with an immediate political resolution. She noted the possibility that emergency releases would be needed to stabilize markets, although such actions remain on hold as nearly half of the emergency reserves remain unutilized.

Experts emphasized that emergency stockpiles offer only a temporary solution and cannot resolve the full-scale supply challenges. Bosoni stressed that any relief efforts must also involve demand reductions to balance the market effectively.

Global concerns remain high amid ongoing disruptions to oil exports from the Gulf, impacting import costs for vulnerable economies. As consumer demand climbs toward seasonal peaks, the situation underscores the fragility of energy supply chains.

READ: Hormuz disruptions could raise vulnerable economies’ oil import costs by $20B per year: UN trade agency

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