The International Energy Agency (IEA) warns of a significant intensification in the oil supply glut due to the ongoing U.S.-Iran conflict, with April expected to see losses double those of March. IEA Executive Director Fatih Birol highlighted that the current energy crisis is unprecedented, with a projected loss of 12 million barrels per day, surpassing historical crises such as those in the 1970s and the disruptions following Russia’s invasion of Ukraine. This situation threatens to exacerbate inflation and economic growth, particularly in emerging markets.
As oil prices have surged over 60% in March, the IEA is considering another release from strategic reserves to mitigate the impact. However, Birol cautioned that while these measures may alleviate some immediate pressures, they won’t resolve the underlying issues, particularly the blockade of the critical Strait of Hormuz.
Market professionals should brace for potential volatility as the energy crisis unfolds, particularly in sectors reliant on oil and gas, and remain vigilant for further IEA actions that could influence supply dynamics.
Source: cnbc.com