Global oil inventories are being depleted at a record pace, the International Energy Agency (IEA) warned Wednesday, as the war in the Middle East disrupts flows through the Strait of Hormuz. Preliminary IEA data shows stockpiles fell by 129 million barrels in March and 117 million barrels in April, following US and Israeli strikes on Iran.
The sharpest declines were in OECD countries, where on-land inventories dropped by 146 million barrels. Cumulative crude supply losses from Gulf producers have now exceeded one billion barrels.
The IEA had announced a release of 400 million barrels from emergency reserves in March, with 164 million barrels already drawn. Oil prices have swung dramatically, with North Sea Dated crude hitting a peak of $144 per barrel before falling below $100 and then climbing again.
Saudi Arabia and the UAE have rerouted some exports outside the Strait, while US and Atlantic Basin producers have increased shipments to Asia. Russian exports have also risen after attacks on domestic refineries reduced local demand.
The IEA now expects global oil demand to fall by 420,000 barrels a day in 2026 to 104 million barrels per day, a downward revision of 1.3 million barrels per day from pre-war forecasts. The agency warned that with inventories drawing at a record clip, further price volatility appears likely ahead of the peak summer demand period.