International Energy Agency: Middle East tensions increase uncertainty in the energy market

```htmlFatih Birol, Executive Director of the International Energy Agency (IEA), stated on the 21st that although there are several buffer factors currently easing the tight supply in the international crude oil market, the latest developments in the Middle East have heightened international concerns and added more uncertainty to the market outlook.In a statement released that day, Birol listed several buffer factors in the international crude oil market. Firstly, Gulf oil-producing countries have maintained substantial supply, especially with Saudi Arabia and the United Arab Emirates promoting some crude oil entering the international market via alternative routes that bypass the Strait of Hormuz. It is estimated that although crude oil exports in the Gulf region have declined from the peak in late June, they remain significantly above the levels recorded from early March to mid-June.Secondly, the United States, Brazil, Venezuela, and Kazakhstan have increased crude oil exports, partially offsetting supply shortages.Additionally, IEA member countries have continued to release strategic oil reserves, helping to ease market pressure to some extent. Since announcing the joint release of 400 million barrels of strategic oil reserves on March 11, member states have actually released around 290 million barrels and still hold substantial reserves, with government-controlled reserves exceeding 1 billion barrels.The IEA also warned that as conflicts escalate and commercial inventories fall, risks to oil supply security cannot be ignored. Compared to crude oil supply, refinery activity and refined oil product supplies have recovered more slowly, making the refined oil product market even tighter.On the natural gas market, countries such as the United States and Canada have increased liquefied natural gas supplies, already covering about 70% of the supply gap caused by the Strait of Hormuz disruption. However, if Gulf exports are slow to resume, market tensions may persist, affecting LNG importers including those in Europe.The IEA called for a prompt resolution of the current conflict and “comprehensive, unconditional” restoration of access through the Strait of Hormuz to prevent further deterioration of global energy security. (Xinhua News Agency)```