Global oil inventories could reach critical levels before the peak of summer demand in the Northern Hemisphere if the current rate of reduction continues. This warning was issued on Tuesday (2) by Toril Bosoni, head of the oil industry and markets division of the International Energy Agency (EIA), during the Middle East Oil and Gas Conference, promoted by S&P Global Energy, in London. “We are seeing a continuous reduction in inventories during the summer, with the possibility or probability of reaching critical levels or historical lows shortly before the peak of summer demand,” stated Bosoni. According to the executive, even if an agreement between the United States and Iran is reached immediately, the normalization of trade flow through the Strait of Hormuz could take between six and eight months. The waterway is one of the most important in the world for the transport of oil and liquefied natural gas. Bosoni highlighted that, given this scenario, a new coordinated release of strategic stocks could be reconsidered. However, this measure is not under discussion at the moment, since about half of the 400 million barrels released as an emergency measure since March have not yet actually reached the market. Despite this, the agency representative stressed that the use of strategic reserves would have a limited effect given the magnitude of the problem. “In any case, the emergency release of stocks is only a temporary palliative measure; it will not solve this problem. The scale of supply losses is so great that the reduction would have to come from the demand side,” she stated.
This text was translated by machine from Brazilian Portuguese.