Oil Stocks Face Critical Test as US-Iran War Disrupts Supplies

The US-Iran war has caused the largest supply disruption in oil history, with an estimated loss of 2.6 billion barrels since the start of the conflict.

Saudi Aramco's head believes this amounts to a massive 25 days of global consumption based on pre-war demand of 103 million barrels per day.

However, China has cut its oil demand in recent months, reducing the world's overall consumption.

The International Energy Agency (IEA) has announced a release of 400 million barrels from emergency reserves, which it claims will cover the current estimated supply gap of 5 million bpd for 300 days.

But analysts warn that this may not be enough, as the IEA cannot order the release of commercial stocks held by refiners, leaving only 0.9 billion barrels in government-held stocks - enough to cover the supply gap for 180 days.