The International Energy Agency warned Wednesday of sharp drop in oil stocks amid renewed disruption to exports from Gulf producers with the Iran war seeing "lower volumes" transiting the seas to markets around the world. File photo by Olivier Matthys/EPA
Aug. 12 (UPI) -- The International Energy Agency warned Wednesday of a sharp drop in global stocks oil amid renewed disruption to exports via the Hormuz Strait and Caspian Sea resulting in "lower volumes of oil" transiting the seas to markets around the world.
In its August Oil Market Report, the agency said measurable global oil inventories -- strategic reserves, on tankers at sea -- plunged by 69 million barrels in July to just under 7.9 million barrels, down from 410 million barrels at the start of the war at the end of February.
Onshore stocks declined by just 6 million barrels as the pace of IEA releases of its emergency stocks eased, even as China continued to draw down on its crude oil reserves.
"Although the market is projected to return to surplus towards the end of this year, risks remain substantial and the urgency of reopening the Strait has increased, as previously available inventory buffers are rapidly depleting," the IEA said.
