Global energy watchdog warns oil stockpiles ‘rapidly depleting’ – business live

Global Oil Supplies Under Pressure as OPEC Lowers Demand Forecast

The International Energy Agency (IEA) has issued a pressing call for the urgent reopening of the Strait of Hormuz, a critical waterway through which a significant portion of the world's oil supplies pass. The move comes as global oil demand continues to face mounting pressure, with the Organization of the Petroleum Exporting Countries (OPEC) lowering its full-year forecast for world oil demand growth for the fourth consecutive month. According to a report seen by Reuters, OPEC now expects oil demand to have grown by just 580,000 barrels per day, a decrease from previous estimates.

The Strait of Hormuz, located between Iran and the United Arab Emirates, is a vital shipping route that accounts for nearly 20% of the world's oil exports. The IEA's call for its reopening underscores the growing concern over the potential disruption to global oil supplies. The Strait has been subject to heightened tensions in recent years, with several incidents of oil tanker seizures and attacks reported in the region. OPEC's revised forecast serves as a stark reminder of the ongoing challenges facing the global oil market, with the cartel's members struggling to meet increasing demand.

The development is likely to have significant implications for the global economy, with oil prices already showing signs of volatility in response to the changing market dynamics. As the world's leading oil producers grapple with the challenges of meeting growing demand, the IEA's call for the reopening of the Strait of Hormuz serves as a timely reminder of the need for urgent action to ensure the stability of global oil supplies.