The head of the International Energy Agency on Thursday warned oil markets could soon enter a “red zone” as global stocks deplete and as demand picks up during the summer travel season.
IEA Executive Director Fatih Birol said the single most important solution to the Iran war energy shock is a full and unconditional reopening of the strategically vital Strait of Hormuz.
If it fails to reopen and no new oil is coming online from the Middle East, an ongoing drawdown in global stockpiles combined with an uptick in demand during the summer travel season means oil markets “may be entering the red zone in July or August,” Birol said without elaborating futher.
His comments came during a Chatham House session on the Strait of Hormuz crisis and global energy security.
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