Oil prices could extend gains at Monday’s open as the US-Israeli war against Iran entered a third week, putting oil infrastructure at risk and keeping the Strait of Hormuz shut in the world’s largest supply disruption, Reuters reports.
The International Energy Agency (IEA) says more than 400 million barrels of oil reserves will begin flowing to the market soon, a record draw aimed at combating price spikes caused by the Middle East war. Stocks from Asia Oceania will be released immediately and those from Europe and the Americas will be available at the end of March, the agency said.
Global oil supply is expected to fall by 8 million barrels per day in March due to disruptions to shipping, while Middle Eastern producers have cut output by at least 10 million bpd, according to the IEA.
