Around 7.5% of the global supply along with larger loads of exports have been impacted in what International Energy Agency has called the biggest-ever oil market disruption, caused by the on-going Iran war.
"The war in the Middle East is creating the largest supply disruption in the history of the global oil market," IEA underlined in its monthly report on Thursday.
The report further highlighted that with Middle East on the boil, global oil supply will decrease by 8 million barrels per day in march.
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Moreover, the IEA has slashed its estimates for global consumption growth this year by roughly 25% to 6,40,000 barrels per day from 8,50,000 barrels per day; the lowest since it introduced forecasts for this year last April.
On Wednesday, the international body had agreed to release an emergency oil stock of 400 million barrels in order to calm the market chaos.
"IEA member countries unanimously agreed on March 11 to make 400 mb of oil from their emergency reserves available to the market to address disruptions stemming from the war in the Middle East," the report statwed.
Oil prices have been on frenzy and spiralled dramatically ever since the United States and Israel launched joint air strikes on Iran on Feb. 28. Initially Brent futures soared to a landmark $120 per barrel and later slipped, with futures trading at $96.42 a barrel on March 12.
The disruptions have caused tanker movements to come to a near halt through the Strait of Hormuz.
"With nearly 20 mb/d of crude and product exports currently disrupted and limited alternative options to bypass the world's most critical oil transit chokepoint, producers and consumers globally are feeling the strain," the report noted.
It also pointed out that with only few ships currently able or willing to load cargoes at port, and domestic storage tanks filling up, producers in the region are reducing or shutting in production. The shutdown will subsequently lead to substantial supply in Iraq, Qatar, Kuwait, the UAE and Saudi Arabia.
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