Global oil inventories falling at record pace amid Iran war; UK bond recovery fizzles out as Streeting ‘prepares challenge’ – business live
Summary
Global oil supplies are dropping at an unusually fast rate due to reduced exports from the Middle East caused by the war involving Iran. The International Energy Agency (IEA) reported that oil reserves fell sharply in March and April as countries used their stockpiles to cover the shortage, and warned that this fast depletion may cause oil prices to rise in the future.Key Facts
- Global oil inventories decreased by 129 million barrels in March and 117 million barrels in April.
- The decline in oil stocks is because exports through the Strait of Hormuz dropped during the Iran war.
- Before the conflict, the world had about 8.2 billion barrels of oil in storage; by the end of April, stocks dropped to approximately 7.8 billion barrels.
- Analysts predict that by the end of May, oil inventories could reach a record low near 7.6 billion barrels.
- The International Energy Agency released its largest government oil reserve stocks in mid-March to help offset the supply loss.
- Global oil demand in 2024 is expected to fall by 420,000 barrels per day, partly due to higher prices and weaker economic conditions.
- Oil supply is forecasted to be on average 1.78 million barrels per day less than demand this year.
- The shrinking oil stockpiles could lead to future increases in oil prices.
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