IEA CHIEF WARNS COMMERCIAL OIL INVENTORIES ARE DEPLETING RAPIDLY, ONLY WEEKS LEFT
Fatih Birol, head of the International Energy Agency, said on Monday that commercial oil inventories were depleting rapidly with only a few weeks worth left due to the Iran war and the closure of the Strait of Hormuz to shipping.
Birol, who is participating in the Group of Seven finance leaders meeting in Paris, told reporters that the release of strategic oil reserves had added 2.5 million barrels of oil per day to the market, but said these reserves “are not endless”.
Reuters – May 18, 2026
The onset of the spring planting and summer travel seasons in the northern hemisphere will drain inventories more quickly as demand for diesel, fertilizer, jet fuel and gasoline increases, Birol added.
Asked about his comments in the G7 meeting, he said he described “a perception gap in the markets between the physical markets and the financial markets” for oil.
Birol said that before the U.S. and Israel launched attacks on Iran at the end of February, there was a major surplus in the oil markets, and commercial inventories were very high. But the situation has rapidly shifted due to the war.
