Global oil inventories could fall to critically or historically low levels just before peak summer demand if the current pace of drawdowns continues, according to Thoril Bosoni, Head of the Oil Industry and Markets Division at the International Energy Agency (IEA).
"We are seeing inventory drawdowns continue into the summer, and there is a possibility – or even a likelihood – that inventories will reach critical or historically low levels just before peak summer demand," Bosoni said.
In May, the IEA warned that global oil supply in 2026 may fail to meet demand as a result of the energy crisis triggered by the war in the Middle East and the closure of the Strait of Hormuz, a key route for global oil shipments. According to the agency's forecasts, global oil supply next year will be 1.78 million barrels per day below total demand.
