The war in the Middle East is creating the biggest oil supply disruption in the history of the global market, the International Energy Agency said on Thursday, a day after the agency agreed to release a record volume of oil from strategic stockpiles.
As reported by Attractions Media, Middle East Gulf countries have cut total oil production by at least 10 million bpd – a volume equal to almost 10% of world demand – as a result of the conflict, the agency said in its latest monthly oil market report. Without a rapid restart of shipping flows, these losses are set to increase, IEA said.
The closure of The Strait of Hormuz has also contributed greatly in the surge of oil prices. The war between Iran and the United States of America is also a major cause as Iran is launching retaliation efforts against ships passing through the strait.
