IMF, World Bank, IEA Warn Hormuz Disruption Could Cause Summer Fuel Shortages as Oil Stocks Drain at Record Pace
The heads of the International Monetary Fund, World Bank and International Energy Agency warned Friday that continued disruption to oil shipping through the Strait of Hormuz is drawing down global oil inventories at a record pace and could lead to fuel shortages during peak Northern Hemisphere summer demand if flows do not return to normal. The three institutions said the prolonged restrictions were increasing risks to fuel security, market conditions and broader economic resilience.
The warning broadens earlier signs of strain in fuel markets. The European Commission said this week that the jet fuel market would tighten in coming weeks without improvement in Hormuz traffic, while UK diesel and gasoil inventories were at the lowest seasonal level in more than two decades at the end of March, down by more than 250,000 tonnes, or 17%, from a year earlier. The IMF, World Bank and IEA also said some countries were already facing higher fuel costs and that fertilizer prices had surged ahead of the planting season after three months of restricted shipping through the waterway.
From the sources (17 posts)
@oilheadlinenewsIRAN'S IRGC NAVY SAYS PASSAGE OF "HOSTILE COUNTRIES" VESSELS THROUGH THE STRAIT OF HORMUZ IS STILL PROHIBITED
@oilheadlinenewsRabobank projects that 700,000 bpd - about 6% of Persian Gulf oil production - may be lost permanently due to underground reservoir damage.
@staunovoAs of May 25, total oil product stocks in #Fujairah dropped to 5.52 million barrels. Overall, there was a net drop of 1.07 million barrels, or a 16.3% week-on-week slump. The weekly stocks movement in Fujairah saw margin draws across all th
@rory_johnstonMaybe we get a deal soon! In the meantime, only 1-2 tankers (2-9 ships total) have managed to transit Hormuz daily over the past 6 days.
@oilandenergyRT @Amena__Bakr: Once the strait opens we’ll find out the true extent of the damage caused by the war on the Gulf’s energy infrastructure.…
@ericnuttallFeeling mentally exhausted from the non-stop stream of conflicting headlines/rumours/tweets/truths??? Focus on "the day after." Depleted inventories, damaged infrastructure, loss of productive capacity, plateau-ish of US shale, risk premium
@oilandenergyThe aluminum market is facing its biggest supply shock in decades as Hormuz disruptions cripple Gulf exports and damage key Middle Eastern smelters. #Aluminum #Commodities #EnergyCrisis #OOTT
@staunovoRT @Amena__Bakr: Once the strait opens we’ll find out the true extent of the damage caused by the war on the Gulf’s energy infrastructure.…
@hfi_researchI am in the camp that I would rather see the Strait of Hormuz reopen just so people can see how the situation (normal flows) won’t be resolved anytime soon. And if normal flows don’t return, you need inbound tankers, production shut in co
@rory_johnston@MostlyBitter They're not all VLCCs, even if the two yesterday were. Furthermore, VLCC exits aren't restarting shut-in Gulf upstream production:
@rory_johnstonWhen people mention the 2 VLCCs (~4 MMbbl) that recently exited Hormuz, they treat it as an offset to the ongoing supply deficit Important to remember that Hormuz exits—at this stage—are just another stock draw Need new empty tankers in t
@staunovoTighter jet fuel market in weeks without Hormuz improvement - EU commission
@jkempenergyU.K. DIESEL AND GASOIL inventories fell to the lowest seasonal level for more than two decades at the end of March. Stocks were down by more than 250,000 tonnes (17%) compared with the same period a year ago, which explains why diesel price
@jkempenergyU.K. jet fuel vulnerability exposed by Hormuz crisis The United Kingdom relies heavily on imports to satisfy its high demand for diesel and especially jet fuel — making it especially vulnerable to any interruption of global fuel supplies.
@mossadil🛢️ STRAIT OF HORMUZ: The heads of the IMF, World Bank, and IEA warn that if shipping through the Strait of Hormuz does not return to normal, fuel shortages could emerge during peak summer demand. “Global oil inventories are being drawn dow
@trtworldIMF and World Bank warn of fuel scarcity during summer if Strait of Hormuz remains closed, citing falling oil stocks ahead of peak seasonal demand and growing concerns over market stability
@iranintl_enThe heads of the World Bank, International Monetary Fund and International Energy Agency warned on Friday that continued disruption to oil shipping through the Strait of Hormuz could increase risks to fuel security, market stability and bro