International Energy Agency (IEA) Executive Director Fatih Birol said commercial oil inventories are declining at a rapid pace, according to remarks made to reporters during the Group of Seven finance ministers’ meeting in Paris.
Birol said the drawdown is happening very quickly and will continue for several weeks. He made similar comments last week.
The IEA chief also warned that fertilizer and diesel prices are rising at the start of the travel and planting seasons. He said this could significantly affect food prices and, combined with higher energy costs, could substantially increase inflation levels.
French Finance Minister Roland Lescure, host of the G7 meetings, told Bloomberg Television that strategic reserves were released a couple of months ago. He added that authorities would release additional reserves in the future if necessary.
