Paris, France – The head of the International Energy Agency (IEA), Fatih Birol, issued a stark warning about the rapidly declining levels of global commercial oil inventories, emphasizing that they are falling “very quickly” as vital energy supplies from the Arabian Gulf region continue to be disrupted due to escalating war and military unrest in the Middle East and the closure of the Strait of Hormuz. Birol further explained that this ongoing depletion of inventories is occurring despite governments worldwide resorting to heavy withdrawals from their strategic reserves in an attempt to stabilize markets.
Paralysis awaits the aviation sector and fears of supply shortages.
Birol’s shocking remarks to reporters came immediately upon his arrival for the stormy G7 finance ministers’ meeting in Paris. He stated, “Trade inventories are declining sharply, and I think they are decreasing very rapidly now.” He added, warning the major economic powers against relying too heavily on temporary solutions, “We still have several weeks before we enter a truly dangerous phase, but everyone needs to wake up and realize that they are declining rapidly, and that these reserves are not unlimited.”
In the same vein, these strategic warnings coincided with escalating international concerns about a severe and unprecedented shortage in fuel and petroleum product supplies. This is exacerbated by the approaching peak summer travel season in the Northern Hemisphere, a period that typically sees the highest global energy demand.
For their part, global airlines have issued urgent appeals and warnings of an imminent shortage of jet fuel within the next few weeks if the current war continues to disrupt Gulf oil supplies. This threatens widespread flight cancellations and record-breaking ticket prices, in addition to exacerbating already soaring global inflation rates fueled by the price of Brent crude, which has surpassed $150 per barrel.
