Oil supply disruptions from the Middle East will hit Europe in April, having a strong impact on the economy, as the closure of the Strait of Hormuz restricts supplies, stated the head of the International Energy Agency, Fatih Birol. Specifically, more than 12 million barrels of oil have been lost since the start of the US-Israel war against Iran due to Tehran’s attacks on facilities and restrictions in the Strait of Hormuz, he added.
Read: IEA: Over 400 million barrels of oil immediately to global market – Release begins
International Energy Agency: Oil losses to double
“The oil loss in April will be double the oil loss in March, in addition to the loss of Liquefied Natural Gas (LNG)…This will come through inflation and will reduce economic growth in many countries,” emphasized Birol, in a podcast with Nicolai Tangen, head of Norway’s sovereign wealth fund.
Losses are expected to increase in April, as many oil and LNG shipments had signed contracts before the war. The biggest problem is the shortage of aircraft fuel and diesel, warned the IEA chief. “We see this in Asia, but soon, I think, in April or May, it will come to Europe,” he added.
Meanwhile, he reiterated that the IEA is considering releasing strategic reserves, following the decision to release 400 million barrels of oil. “We are heading towards a major, major disruption and the largest in history so far,” concluded Birol.
