International Energy Agency chief Fatih Birol warned on May 22, 2026, that the global oil market faces a supply red zone by July. Tensions in the Middle East and disruptions in the Strait of Hormuz have severely restricted global supply. The IEA is considering emergency reserve releases to prevent severe shortages this summer.
Goldman Sachs confirmed that global oil stockpiles are declining at a record pace. Inventories fell by 8.7 million barrels per day throughout May.
Oil prices ended a three-day decline on Friday in response to the supply warnings. WTI crude climbed toward $98 per barrel. Brent crude rose to approximately $105 per barrel.