Oil market experiencing largest supply disruption in global history - IEA

The Middle East conflict has triggered the largest oil supply disruption in global history, the International Energy Agency (IEA) said on Thursday, ⁠a day after the ​agency agreed to release ​a record volume of oil from strategic stockpiles.

Oil and refined product flows through the Strait of Hormuz have plummeted from roughly 20 million bpd to a trickle, while bypass options for this critical chokepoint remain limited as inventories swell, the IEA said in a report.

The agency notes that producers and consumers worldwide are already feeling the impact of the crisis. Since the start of the conflict, oil prices have surged by almost $20 to $92 a barrel, with refined product prices rising even faster.

Middle East Gulf ​countries have cut total ​oil production by at least 10 ‌million ⁠bpd - a volume equal to almost 10% of world demand - as a ​result ​of ⁠the conflict, the agency said.

"With limited capacity available to bypass the chokepoint and storage facilities rapidly filling up, Gulf producers have cut total oil output by at least 10 million bpd," the report reads.

Without a rapid restart of shipping flows, ⁠these ​losses are set ​to increase, IEA said.