IEA Chief Birol says more than 12mln BPD of oil supply has been lost so far due to the Middle East crisis; the current crisis is worse than the 1970s oil shocks and the loss of Russian gas in 2022 combined
- Oil supply losses in April are expected to be twice as high as in March.
- Biggest problem is a lack of jet fuel and diesel, already affecting Asia and coming to Europe in April–May.
- Further releases of strategic reserves are being considered if needed for crude oil or products.
- Around 40 key energy assets have been damaged in the Middle East.
Context
The IEA Chief's remarks underscore a significant and escalating oil supply crisis that could exert upward pressure on prices, particularly for WTI. The loss of supply from the Middle East, coupled with the noted lack of jet fuel and diesel, suggests a tightening market that may prompt further strategic reserve releases and impact inflation. Traders should watch for potential volatility in oil markets and related commodities as the situation unfolds.
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