Global oil reserves are shrinking at a record pace due to disruptions caused by the Iran conflict, raising fears of further spikes in fuel prices, according to the International Energy Agency (IEA).

In its latest monthly oil market report, the IEA warned that “rapidly shrinking buffers amid continued disruptions, may herald future price spikes ahead.”

The agency said global oil inventories fell by 246 million barrels between March and April, leaving stockpiles at 7.9 billion barrels.

According to the report, daily drawdowns in April were roughly equal to the combined oil consumption of Canada and the United Kingdom.

The IEA said supply disruptions linked to the Strait of Hormuz had now exceeded one billion barrels, severely affecting global energy markets.

The report also warned that higher oil prices are weakening global demand as businesses and households reduce consumption.

“The world is drawing oil inventories at a record pace as importing countries confront unprecedented disruptions to Middle Eastern supply,” the agency said.

The petrochemical sector has been among the hardest hit, affecting production of plastics, fertilisers and pharmaceuticals.

The IEA now expects global oil demand to average 104 million barrels per day this year, 1.3 million barrels lower than forecasts made before the war began.