Global oil inventories are at risk of falling to critically low levels ahead of the Northern Hemisphere’s peak summer demand, according to the International Energy Agency (IEA).
Toril Bosoni, head of the IEA’s oil industry and markets division, warned that continued stock draws could push inventories to historical lows just as travel-related fuel demand rises.
She added that disruptions in supply, including losses from Gulf producers and uncertainty over the Strait of Hormuz, are not being fully offset by production increases from the Americas.
Instead, higher prices and weaker economic conditions are already forcing “demand destruction,” particularly in transport fuels, with Chinese imports also declining sharply.
The IEA stressed that emergency stock releases would only offer temporary relief, as a sustained imbalance would require demand-side adjustments rather than supply fixes.
Source: PhilNews24 | June 4, 2026
