economy
Oil supply crunch will worsen in April, IEA warns as it weighs releasing more strategic reserves
The organization’s Executive Director Fatih Birol also warned that the Iran war had created the worst oil crisis in history.
TL;DR
- The oil supply glut and energy crisis are intensifying due to the Iran war.
- April is expected to be significantly worse than March, with a greater loss of oil supply.
- The current crisis surpasses previous ones in the 1970s and 2022, with a loss of 12 million barrels per day.
- Disruptions to gas supplies and vital commodities like petrochemicals are also exceeding past crises.
- The IEA is considering releasing more strategic oil reserves to mitigate supply shortages, particularly of jet fuel and diesel.
- Releasing reserves is seen as a way to reduce pain but not a cure; opening the Strait of Hormuz is necessary.
- Recommendations to soften the impact include reducing speed limits, working from home, and less use of gas ovens.