Iea: Middle East Tensions Threaten Energy Security, but Crude Oil Market Remains Supported

International Energy Agency Executive Director Fatih Birol said hostile actions against energy infrastructure in and around the Strait of Hormuz have intensified recently, heightening concerns about global energy supply security and adding uncertainty to the market outlook. According to Jin10, he also said crude oil prices remain supported by multiple cushioning factors, with Gulf producers such as Saudi Arabia and the United Arab Emirates using alternative transport routes to keep supplies flowing and some crude still being exported through the Strait of Hormuz. IEA estimated that Gulf-region crude exports were below the late-June peak but still well above the level seen from March to mid-June, while higher exports from the United States, Brazil, Venezuela and Kazakhstan partially offset supply losses in the Gulf. China has cut crude imports by nearly 50%, which also helped stabilize the market, and the IEA said member countries have released about 290 million barrels to the market since March 11, when it announced the release of 400 million barrels of oil reserves.