• Release of strategic oil reserves have added 2.5 million bpd to the market
• However, they are not endless
• There is a perception gap between the physical oil market and futures
• Commercial oil inventories are depleting rapidly, only a few weeks left

This continues his warning from last month, in saying that Europe could run out of jet fuel in about six weeks. So, we’re starting to push towards the edge of the situation caused by the Middle East conflict now.

Even if it may not be entirely evident, make no mistake that global oil inventories are falling at a record pace.

The point about there being a “perception gap” between physical prices and futures is a key fact that market players might not be factoring in. That especially if you consider how calm investors in the equities market have been, that is before the bond market blew up towards the end of last week.

Still, not everyone shares the same view as the IEA chief though.

A couple of energy firms and even the likes of Air France and British Airways have announced that they have enough supplies to last through the summer. And that means covering the peak travel season that will typically see take place in the months ahead.

One energy consultant is also quite optimistic about the situation, arguing that the release of strategic inventories by the IEA will help to cover about 34% of Europe’s jet fuel supply deficit that was seen during last year. Meanwhile, the rest of the gap can be filled by increased imports from the likes of the US and Nigeria. More on that from the FT here (may be gated).