Commercial oil inventories are nearing depletion, with strategic reserves adding 2.5 million bpd but failing to bridge a growing supply gap.
Global commercial oil inventories are declining at a record rate, with only weeks of supply remaining, according to the International Energy Agency. Strategic reserves have injected 2.5 million barrels per day into the market, but the IEA warns these measures are not sustainable amid rising demand and geopolitical tensions.
The warning follows last month’s alert about Europe potentially running out of jet fuel within six weeks. While some energy firms and airlines claim sufficient summer supplies, the IEA highlights a disconnect between physical oil markets and futures pricing, suggesting investors may be underestimating risks.
Analysts remain divided, with one consultant estimating strategic releases could cover 34% of Europe’s jet fuel deficit. Increased imports are expected to address the remaining shortfall, though concerns persist over long-term supply stability.