Brussels: Executive Director of the International Energy Agency Fatih Birol warned that the oil market could enter the red zone during July or August if the escalation in the Middle East continues:
According to Yemen News Agency, he explained that oil demand rises with the travel season in late June, putting pressure on supplies.
He affirmed the agency's readiness to pump additional reserves if member states decide to do so. The 32 countries had agreed in March to release 426 million barrels from strategic stocks. The agency pointed out that the disruption of navigation in the Strait of Hormuz led to a loss of over one billion barrels of Gulf oil exports, a deficit estimated at 14 million barrels per day.
It warned on May 13 of a record decline in global stocks as the war continues, which could raise prices. For his part, analyst Arnie Lohmann Rasmussen believed that the price decline may not be significant even after the strait is reopened due to the need to replenish stocks.