Oil price spike turmoil far from over, IEA says as inventories are depleted at “record pace"

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Oil price spikes are likely over the peak summer demand period as rapidly depleting inventories pile more pressure on the market, the International Energy Agency warned in its latest monthly update released on Wednesday.

The oil market report for May noted that global oil supply declined by a further 1.8 million barrels per day in April, taking total losses to 12.8 mb/d since the U.S.-Israeli war with Iran began on February 28.

“More than ten weeks after the war in the Middle East began, mounting supply losses from the Strait of Hormuz are depleting global oil inventories at a record pace,” the IEA wrote.

International benchmark Brent