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Oil Stockpiles Shrink Rapidly as Hormuz Disruptions Persist, Global Agencies Say

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Global oil inventories are being drawn down at a "record pace" as disruptions linked to the Strait of Hormuz continue to remove significant supply from the market, international agencies said in a statement on Friday.

The heads of the International Energy Agency, International Monetary Fund, World Bank Group and World Trade Organization met on May 28 to coordinate their response to the energy and economic fallout from the Middle East conflict and assess risks facing global markets.

"If shipping flows do not return to normal, continued rapid depletion of global oil inventories ahead of peak summer oil demand in the Northern Hemisphere would present increasing risks for fuel security, market conditions, and broader economic resilience," according to the joint statement released Friday.

The statement said the conflict is generating "substantial and highly asymmetric impacts on energy supplies," increasing pressure across energy markets and creating challenges for fuel-importing economies.

The agencies warned that vulnerable countries are facing "higher fuel and fertilizer prices, increased uncertainty, and risks to jobs and livelihoods," while rising fertilizer costs are adding pressure ahead of key planting seasons.

Officials reviewed the impact of supply disruptions across affected regions and discussed ways to strengthen support for countries facing the greatest energy-related challenges.

"We will remain in close contact as the situation evolves and continue coordinating our efforts to support the countries most affected and global economic stability," the group said.

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