OECD Oil Inventories Drop to Lowest Since 1990 Amid Middle East War and Reserve Releases

(AFP, Paris, June 16) — The International Energy Agency (IEA) announced today that oil inventories in OECD countries dropped to their lowest level since 1990 in May, following government releases of strategic reserves in response to disruptions in crude oil shipments through the Persian Gulf during the Middle East conflict.

According to AFP, the IEA stated in its monthly report that OECD nations, a group of wealthy countries, have collectively released 163 million barrels of oil from their inventories since the conflict began.

"Despite significant declines in crude oil and refined product demand, buffer stocks within the supply system continue to deplete at a record pace," the IEA said.

To mitigate the impact of soaring oil prices caused by Tehran's de facto blockade of the Strait of Hormuz, the IEA coordinated the release of 400 million barrels of strategic reserves into the global market. As of June 12, 252 million barrels have been released.

After nearly four months of conflict between the U.S. and Iran, both sides announced earlier this week that they have reached a ceasefire agreement. The IEA stated, "The pace of emergency stock releases by countries is expected to slow in June and July."

However, the impact of high oil prices on demand is expected to persist through the end of this year, with global oil demand projected to be 1.1 million barrels per day lower than 2025 levels.

"As trade flows normalize, oil prices decline, and economic outlooks improve, driving market recovery, we expect global oil demand growth to rebound strongly to 2 million barrels per day in 2027," the IEA said. (Compiled by Liu Wen-yu) 1150617