Oil supply crunch will worsen in April, IEA warns as it weighs releasing more strategic reserves

IEA Chief Fatih Birol warned the oil supply shock will be worse this month than in March and said the IEA is weighing another release of strategic oil reserves. The comment points to upside pressure on oil prices and near-term inflation risks; a coordinated reserve release could partially offset the shock. Monitor crude price moves and any official reserve-release announcements that would materially affect market supply.

Analysis

IEA Chief Fatih Birol warned the oil supply shock will be worse this month than in March and said the IEA is weighing another release of strategic oil reserves. The comment points to upside pressure on oil prices and near-term inflation risks; a coordinated reserve release could partially offset the shock. Monitor crude price moves and any official reserve-release announcements that would materially affect market supply.