International Energy Agency: Oil stocks nearing depletion

“Al Arabiya” – The International Energy Agency (IEA) has warned that the world faces more difficult days ahead if the Strait of Hormuz is not reopened soon, noting that global oil reserve stocks are on the verge of depletion if the strait is not opened in the near future.

It added that the energy landscape will not return to its previous state even if the Hormuz strait is reopened, pointing out that the world has entered a new era of energy security.

In a related development, IEA Executive Director Fatih Birol told Reuters that the agency is not currently discussing the release of a second tranche of strategic oil reserves.

Birol added that the agency is closely monitoring markets, and that 80 percent of strategic reserves remain in place after the release of 400 million barrels last March.

Regarding gas, Birol expressed concern over current gas reserve levels in Europe, which the AGSI platform indicates stand at around 62 percent.

Birol said, “Stocks are below the lowest recorded average, and we are still holding out hope for gas supplies from the Middle East. At the same time... Europe has committed to halting Russian gas imports,” adding, “If Europe experiences a harsh winter, we may face some difficulties.”

The IEA had previously announced that more than 115 countries have taken measures to cope with the repercussions of the Iran war and the closure of the Strait of Hormuz, in an effort to mitigate the impact of energy supply disruptions.

In contrast, 30 countries have announced long-term policies to reduce reliance on fossil fuels, through energy efficiency programs, the expansion of electric vehicles, and incentives for the use of renewable energy.