IEA Chief Fatih Birol cites depleting stockpiles and rising summer demand as potential drivers of market strain.
International Energy Agency Executive Director Fatih Birol stated oil markets could face significant tightening in July and August due to shrinking inventories and stronger seasonal demand. The warning comes amid ongoing geopolitical tensions affecting supply routes, including the Strait of Hormuz.
Recent trends show global oil stockpiles declining, while summer travel and cooling demand typically boost consumption. Comparable periods in past years have seen price volatility when supply constraints coincide with peak demand. The IEA has previously highlighted risks from OPEC+ production cuts and disruptions in key transit chokepoints.
Birol expressed hope for the unconditional reopening of the Strait of Hormuz, a critical route for global oil shipments. Market reactions to supply risks often drive price fluctuations, particularly for benchmarks like WTI and Brent crude.