IEA flags huge drawdown in global oil stocks amid Middle East supply disruptions

Rashmi Pandey — Wed, 13 May 2026 08:34:56 +0000

The International Energy Agency (IEA) has reported a massive withdrawal of 246 million barrels from global oil reserves during March and April, highlighting the growing strain on international energy markets amid continuing disruptions linked to the Middle East conflict.

The latest figures come as the global oil market faces one of its most severe supply shocks in recent years following escalating tensions involving Iran and disruptions around the strategically critical Strait of Hormuz. According to recent IEA assessments, large-scale supply losses and shipping disruptions have sharply tightened global crude availability.

The IEA had earlier announced the largest coordinated emergency oil stock release in its history, with member countries agreeing in March to make nearly 400 million barrels available from strategic reserves to stabilise global markets and contain soaring energy prices.

Officials said the withdrawals during March and April reflected both emergency reserve releases and heavy market usage as countries attempted to offset supply shortages caused by reduced Gulf exports and logistical disruptions. Several major economies, including the United States, Japan, South Korea and European nations, participated in the coordinated reserve release programme.

The IEA warned that despite the unprecedented intervention, oil supply is still projected to remain below global demand this year. The agency recently estimated that supply could fall short of demand by nearly 1.78 million barrels per day because of ongoing geopolitical tensions and reduced production flows linked to the Iran conflict.

Global oil inventories outside the Gulf region also witnessed major declines as countries drew heavily on reserves to stabilise domestic fuel supplies. Previous IEA reports had already indicated sharp inventory drops during March when shipping flows through the Strait of Hormuz were severely disrupted.

Energy analysts say the scale of reserve withdrawals underscores growing fears over prolonged instability in global oil markets. The Strait of Hormuz remains one of the world’s most critical energy chokepoints, handling nearly one-fifth of global oil and gas trade. Continued tensions in the region have already triggered volatility in crude prices, shipping insurance costs and aviation fuel markets.

IEA Executive Director Fatih Birol has previously warned that market conditions remain “extremely critical” and indicated the agency stands ready to recommend further reserve releases if supply conditions worsen.

The latest developments are being closely monitored by governments and financial markets worldwide as concerns grow over inflationary pressures, fuel availability and the broader economic impact of prolonged energy disruptions.

GlobalEconomy | Business Upturn

IEA flags huge drawdown in global oil stocks amid Middle East supply disruptions