Key facts
- IEA warns global oil inventories could fall to critical levels.
- Inventories risk declining before the summer demand peak.
- China's onshore crude volumes have also begun to fall.
- The energy crisis could persist for months.
The International Energy Agency (IEA) has issued a warning that global oil inventories are at risk of falling to "critical levels" ahead of the peak summer demand season. This potential drawdown in reserves, particularly concerning as demand typically rises during the summer months for travel and other uses, signals a fragile market situation. Even if geopolitical tensions, such as a potential resolution to the US-Israel war on Iran, were to ease, the energy crisis could persist for several more months. While China's crude reserves have shown some resilience, its onshore volumes have also started to decline, further contributing to the concern over global stock levels.