World faces largest-ever oil supply disruption on Middle East war, IEA says

It says disrupted Gulf supply could worsen without shipping recovery

FILE PHOTO: A pump jack is seen at sunrise near Bakersfield, California Oct 14, 2014. REUTERS/Lucy Nicholson/File Photo/File Photo

The war in the Middle East is creating the biggest oil supply disruption in the history of the global market, the International Energy Agency said on Thursday, ⁠a day after the agency agreed to release a record volume of oil from strategic stockpiles.

Middle East Gulf countries have cut total oil production by at least 10 million ⁠bpd - a volume equal to almost 10 percent of world demand - as a result of ⁠the conflict, the agency said in its latest monthly oil market ⁠report.

Without a rapid restart of shipping flows, ⁠these losses are set to increase, IEA said.