A strange contradiction in the oil market; A global oversupply coupled with a decline in soil reserves.
The International Energy Agency (IEA) announced a daily supply surplus of about two million barrels of oil in the current quarter; But the statistics of global reserves show a different picture of the state of the energy market.
According to published data, global oil inventories increased by 52 million barrels in October, while the volume of oil stored in tankers increased by 86 million barrels.
This difference shows that oil reserves on land fell by 34 million barrels and reached the lowest level since 2016.
At the same time, governments plan to release another 71 million barrels from their emergency reserves by the end of February, including about 15 million barrels of diesel fuel.
According to reports, since the start of the Iran war, global oil reserves have decreased by 462 million barrels.
This figure shows that despite the apparent oversupply, a significant portion of the oil is stored at sea and the market is still facing land supply constraints.