Global Oil Supply Won’t Meet the Demand This Year on Iran War, IEA Says

The International Energy Agency (IEA) warned that global oil supply will not be able to meet the total demand this year, upending its previous projection of a surplus, reported Reuters. In its update for April, the organisation reportedly said the world is “drawing oil inventories at a record pace as importing countries confront unprecedented disruptions to Middle Eastern supply”. Reuters said the IEA has replaced a previous projection of a 410,000 barrels per day (bpd) oil surplus in 2026 in last month’s report with a forecast that supply will come in 1.78m bpd below demand. It continues that the IEA “sees demand falling by ⁠420,000 bpd this year, compared with a previous forecast of an 80,000 bpd drop”. 

Govt Offers ₹37,500 Crore Subsidy for Coal Gasification, to Convert Coal into Gas  

The Centre approved ₹37,500 crore coal/lignite gasification scheme to meet target of gasifying 100 million tonnes (MT) of coal by 2030 and cut imports of key products such as LNG [liquefied natural gas[ (more than 50% imported), urea (~20% imported), ammonia (~100% imported), and methanol (~80–90% imported), HT, the Hindu and other media outlets reported. 

Government in a note laid out India’s import bill for LNG, urea, ammonium nitrate, ammonia, coking coal, methanol and others which stood at approximately ₹2.77 lakh crore in financial year 2025, a vulnerability further exposed by the ongoing geopolitical situation in West Asia, the note said.

Coal gasification is a thermo-chemical process that converts coal into synthesis gas, consisting of carbon monoxide and hydrogen, HT explained. 

The scheme subsidises new surface coal/lignite gasification projects for production of syngas and its downstream products, targeting gasification of approximately 75MT of coal/lignite

The plan includes incentive of 20% of the cost of plant and machinery, offered through a competitive bidding process, with an evaluation framework benchmarking project cost, coal input, and syngas output.

The financial incentive for any single project will be capped at ₹5,000 crore; for any single product (except synthetic natural gas and urea) capped at ₹9,000 crore; and any single entity group capped at ₹12,000 crore across all projects, the report said citing government note.

Saudi Aramco Warns Fuel Stocks Heading for 'Critically Low Levels' 

Oil and gas company Saudi Aramco warned that the world’s stocks of petrol and jet fuel could reach “critically low levels” in peak summer time, reported FT, quoting Amin Nasser, Saudi Aramco’s chief executive who was concerned over “rapidly accelerating” decline of “onshore inventories” amid the ongoing strait of Hormuz closures triggered by attack by U.S. and Israel on Iran.

Quoting Nasser, Bloomberg reported that global oil markets are losing 100m barrels every week due to the closure. The Wall Street Journal added that if the reopening of the strait is delayed by several more weeks, oil markets might not normalise until 2027.

Gasoline Costs 52% More in the US Than it Did Before the Iran War

The price of gasoline in the US is now 51% higher than before the war in Iran started, the Independent reported. The main reason drivers are paying more at the pump is because the war has stranded oil tankers near the Strait of Hormuz, a narrow passage through which a fifth of the world’s crude oil normally passes. Thr newspaper said that the price of crude oil, which is the main ingredient in gasoline, climbed for most of the past two months because Iran has effectively shut the waterway located off its coast. According to the NYT, “the higher prices are “hitting lower-income Americans the hardest”. 

Oil Market One Month From 'Tipping Point' as Global Stockpiles Dwindle

Oil traders warned that the market is four weeks away from a “tipping point” that will lead to significantly higher prices, as the blockade of the strait of Hormuz reduces global stockpiles, reported FT. The newspaper added: “Traders and analysts warned that global stocks of crude, gasoline, diesel and jet fuel will hit critically low levels by the end of May, at which point prices will escalate rapidly.” 

According to Bloomberg every day the waterway remains shut, the world is using up commercial stockpiles, strategic reserves and crude that was stored in vessels before the US and Israel launched the Iran war”, according to America’s biggest oil companies

Lufthansa is Considering Adding Refuelling Stops to Direct Flights, as a Result of Fuel Shortages. 

Lufthansa airline is planning to add stops to flights that currently are nonstop because the German airline is expecting the fuel to run out by July due to the blockade of the Strait of Hormuz, Bloomberg reported.According to the Telegraph, the airline warned that “some major airports have already begun to run out of jet fuel”, Airports are already running out of fuel, says Lufthansa German airline cuts 20,000 short-haul journeys as flights forced to make detours