IEA reports oil inventories fell as diesel and fertilizer costs rose

The International Energy Agency warned that commercial oil inventories are dropping rapidly and will keep falling in the coming weeks. IEA chief Fatih Birol made the statement at the G7 finance ministers meeting in Paris. Birol warned that rising diesel and fertilizer costs during the travel and planting season could drive up food prices and push inflation higher.

The agency did not specify the size of the inventory decline or provide a timeline beyond the coming weeks.

Lescure said governments could release strategic oil reserves again if needed. No other officials at the meeting commented on the inventory data or proposed actions. The warning comes as seasonal demand for diesel and fertilizer typically increases in spring and early summer months.