International Energy Agency Warns of Decline in Global Oil Supplies and Rapid Depletion of Strategic Reserves

Welat TV – Erbil

The International Energy Agency stated that global oil supplies are projected to decline by approximately 3.9 million barrels per day during 2026 due to disruptions caused by the war in Iran, noting that large areas of the Middle East have lost more than one billion barrels of available supply.

In its monthly oil market report released on Wednesday, May 13, 2026, the agency said the decline in supplies would come at a time when demand is also expected to weaken, with global oil demand projected to fall by around 420,000 barrels per day this year.

The report added that pressure on demand is increasing as a result of rising oil prices, which are limiting consumption and affecting the pace of global economic growth.

Decline in Strategic Reserves

Earlier this month, Fatih Birol, executive director of the International Energy Agency, stated that the agency is prepared to release additional quantities from strategic reserves if supply disruptions continue, noting that member states have already withdrawn nearly 20% of their available stockpiles.

International Efforts to Stabilize Markets

In the same context, the administration of U.S. President Donald Trump announced earlier this month its intention to lend energy companies up to 92.5 million barrels of crude oil from the strategic petroleum reserve in an effort to calm markets experiencing sharp price increases.

According to reports by Reuters, the move comes as part of U.S. commitments to release a total of 172 million barrels from strategic reserves under a broader international agreement reached in March among more than 30-member states of the International Energy Agency, aimed at injecting nearly 400 million barrels into global markets.

Impact of the War on Energy Markets

Global energy markets have faced continued turbulence since the outbreak of war between the United States, Israel, and Iran on February 28, amid growing concerns over the impact on global supply routes, particularly as nearly 20 million barrels of oil per day pass through the Strait of Hormuz, one of the world’s most critical maritime energy corridors.