Berlin: Global oil inventories could reach critical levels ahead of the peak summer demand period if stock draws continue at their current pace, the International Energy Agency (IEA) said on Tuesday.
According to Qatar News Agency, Toril Bosoni, Head of the Oil Industry and Markets Division at the IEA, stated that the ongoing stock draws could result in inventories reaching critical or historically low levels just before the peak summer demand. Bosoni shared these insights during the S and P Global Energy Middle East Petroleum and Gas Conference in London.
Bosoni further explained that reopening the Strait of Hormuz could take six to eight months in an ideal scenario, even if an agreement were reached immediately. This situation may lead to the possibility of another IEA-coordinated emergency stock release. However, this is not currently being discussed, as about half of the initial 400-million-barrel coordinated release from March has not yet reached the market.
She emphasized that emergency stock releases are only temporary solutions and will not resolve the issue. The scale of the supply losses necessitates a reduction from the demand side to address the problem effectively.