IEA Chief Warns of Potential Oil Market Risks Amid Summer Demand

The International Energy Agency (IEA) Chief, Fatih Birol, warned on Thursday that the oil market might enter a 'dangerous zone' during July and August due to peak summer fuel demand, reduced new oil exports from the Middle East, and ongoing inventory declines. According to Odaily, Birol did not provide further details on the situation. In his speech, Birol noted that the world was in a state of oil surplus during the oil supply crisis triggered by the Iran war, which helped mitigate the impact. However, he highlighted that inventories are now continuously decreasing. Birol stated that the IEA is prepared to take action if necessary, coordinating further releases of strategic oil reserves. The agency is ready to act if countries decide to release more reserves.