Global Oil Reserves Plunge as Iran War Drags On

The ongoing war between the US and Iran has led to a significant disruption in global oil supplies. According to Reuters, countries directly affected by conflict produced roughly 45 million barrels of oil per day last year, representing over 43% of global supply.

This shortage has been mitigated so far due to measures such as releasing oil from emergency stockpiles and rerouting shipments through alternate pipeline systems. However, these buffers are not sustainable and have been substantially reduced since the war began on February 28.

The International Energy Agency (IEA) reported that global oil inventories had fallen by 410 million barrels since the beginning of the war, declining to just under 7.9 billion barrels by the end of July. In the US, the Strategic Petroleum Reserve fell to its lowest level since November 1982, following the release of another 3.7 million barrels.