Oil reserves eased Iran war price shock, but now they are 'spent', IMF says
The IMF warns that global oil reserves, which previously helped mitigate price shocks from the Strait of Hormuz closure, are now largely depleted. Experts suggest that global oil prices are likely to rise as supply buffers shrink and market volatility persists.
Why it matters
The depletion of these strategic buffers leaves the global economy highly vulnerable to further geopolitical instability in the Middle East.
The oil price has increased by more than 10 per cent since the most recent closure of the Strait of Hormuz. ( AP )
The global economy was spared from the worst of the biggest oil shock in 50 years because of large oil reserves, according to the International Monetary Fund.
It says lower consumption in Asia and higher oil production outside of the Gulf helped absorb further price shocks.
Experts say global oil prices are likely to increase as reserves dwindle.
Link copied Share Share article Depleted oil reserves have left economies vulnerable to soaring fuel prices as the US-Iran conflict resumes, the IMF has warned.
Before the war began, global oil supplies were at about 2 million barrels a day above demand.
Iran war updates: Look back at how the day's events unfolded in the Middle East with our blog.
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