IEA: As global oil inventories decline at a record pace, oil prices may rise further

Mars Finance News, May 13 — The International Energy Agency (IEA) warned on Wednesday that global oil inventories are declining at a record pace, and ongoing turmoil caused by the Iran conflict could lead to further spikes in oil prices. In April, crude oil and refined product inventories decreased at a rate of nearly 4 million barrels per day — equivalent to the combined consumption of the UK and Germany — which could weaken countries’ buffer capacity to respond to supply shocks. The report states: “Due to unprecedented Middle Eastern oil supply disruptions faced by importing countries, global oil inventories are declining at a record rate.” “With ongoing disruptions, the buffer space is shrinking rapidly, which may signal future price surges.” (Jin10)