IEA Warns Global Oil Inventories Could Reach Critical Levels Before Summer Demand Peak

Amman, June 2 (Petra) – Global oil inventories could fall to critical levels before peak summer demand if current drawdown rates continue, the International Energy Agency's (IEA) head of the Oil Industry and Markets Division, Toril Bosoni, said on Tuesday.

"We continue to see inventory withdrawals extending into the summer, with the possibility – or likelihood – of reaching critical or historically low levels just before peak summer demand," Bosoni said.

According to Reuters, Bosoni made the remarks at the Middle East Oil and Gas Conference organized by S&P Global Energy in London.

She said that reopening the Strait of Hormuz could take between six and eight months at best if an agreement were reached today.

Bosoni added that such a scenario could prompt further releases from emergency oil reserves coordinated by the International Energy Agency. However, she said the issue is not currently under discussion because markets have not yet received roughly half of the initial 400 million barrels released in March.

"Whatever happens, drawing on emergency reserves is only a temporary measure and will not solve the problem," Bosoni said.

She added that the scale of supply losses is significant and would require compensation through reduced demand rather than relying solely on strategic stockpiles.

//Petra// AF

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