Global Oil Inventories Near Critical Lows at 791 Million Barrels as Hormuz Deal Stalls
Updated
Updated · Reuters · Jun 5
Global Oil Inventories Near Critical Lows at 791 Million Barrels as Hormuz Deal Stalls
1 articles · Updated · Reuters · Jun 5
Summary
U.S. crude inventories including the Strategic Petroleum Reserve fell to 791 million barrels in the week to May 29, the lowest since February 2024, after dropping nearly 64 million barrels since the Iran war began.
Exxon, the IEA and JPMorgan warned global buffers are nearing exhaustion as the Strait of Hormuz remains effectively closed, raising the risk of a fresh oil price spike by late June.
Exxon said dated Brent could jump to $150-$160 a barrel if stocks fall much further, while analysts said the duration of elevated prices matters more than the peak for economic damage.
Record stock releases and weaker Chinese seaborne crude imports have so far capped crude below $100, but analysts said those cushions may fail if the disruption drags into peak summer demand.
Investors and economists said a prolonged shock would feed inflation, lift bond yields and curb consumer spending, with Europe and Asia more exposed than the relatively insulated U.S.
With oil reserves dwindling, what is the last defense against a global recession triggered by $150 oil?
Can new pipelines permanently break the Strait of Hormuz's stranglehold on the world's economy?
How does the Hormuz crisis threaten a global food catastrophe by crippling humanitarian aid and supply chains?
2026 Strait of Hormuz Shutdown: Oil Inventories Plunge, Prices Soar, and Geopolitical Risks Escalate
Overview
The ongoing disruption in the Strait of Hormuz has triggered a severe supply shock in the global oil market, pushing inventories to critically low levels and exposing the market’s dangerous underestimation of the crisis. With the option to release more oil from reserves severely limited, the world faces mounting pressure as inventories cannot be fully depleted. This bottleneck has led to sharp warnings about potential price spikes and heightened economic risks. The crisis highlights how a single chokepoint can destabilize global energy supplies, emphasizing the urgent need for strategic responses and greater energy security.