The Mideast war “is creating the largest supply disruption in the history of the global oil market”, as Iran’s chokehold on regional supplies forces Gulf oil producers to slash production, the International Energy Agency said Thursday.
In its latest market report, the IEA said crude oil production was currently down by at least 8.0 million bpd, with an additional 2.0 million related to petroleum products including condensates shut off.
The war has seen Iran tighten its chokehold on the Strait of Hormuz, a vital transit point for oil trade, reducing supplies to a trickle with the strait, through which a fifth of global crude passes, effectively all but shut down. (AFP)
