Global oil reserves draining at a rapid pace

The global energy map is redrawing itself at a terrifying pace as the war in the Middle East chokes the world’s most vital artery.

According to the International Energy Agency (IEA), global oil reserves are being drained at a record rate, with a staggering 246 million barrels pulled from stockpiles in just the last two months. The culprit is the near-total shutdown of the Strait of Hormuz a maritime chokepoint through which 20% of the world’s oil usually flows which has effectively wiped 12.8 million barrels per day off the market since February.

It’s the “largest disruption in history,” according to the IEA. While Atlantic Basin producers like the U.S. and Brazil are pumping at full throttle to bridge the gap, they can’t move fast enough to stop the bleeding. In Asia, the crisis has already hit the streets, with long queues at petrol stations and massive industrial slowdowns. Even with a ceasefire recently announced, experts warn that physical oil prices have touched record highs near $150 per barrel, and it could take years to restock the world’s depleted emergency vaults. For the global economy, the message is clear: the safety net is thinning, and the energy world is operating on a knife-edge.