Amid escalating prices of petroleum products, as well as, the liquefied petroleum gas (LPG) across parts of Nigeria, and the rest of the world, leaders of the International Monetary Fund (IMF), World Bank and International Energy Agency (IEA) have warned of risks to fuel security during peak-demand months of second and third quarter, unless oil shipping through the Strait of Hormuz is normalized.

According to the leaders, global oil inventories are being drawn down at a record pace in response to the major loss of supply through the Strait of Hormuz.

Ad >>>

In a joint statement released by the leaders, Friday, the organisations’ heads warned of rapid depletion of global oil inventories ahead of peak summer oil demand in the Northern Hemisphere, adding that the situation ‘would present increasing risks for fuel security, market conditions, and broader economic resilience.’

The joint statement by heads of the IMF, World Bank, and IEA also highlighted that the surge in energy and fertiliser prices due to the war was having a disproportionate effect on lower-income countries.

“Higher fertiliser prices are of particular concern as many countries enter the planting season,” they said.

The US-Israel war with Iran has engulfed the Middle East in conflict, with Tehran’s retaliatory attacks targeting Washington’s allies in the Gulf and virtually blocking the key waterway, through which a fifth of global energy supplies normally pass.