Oil Prices Fall After 13 Million-Barrel-a-Day Shock as Supply Surges and Demand Sinks
Updated
Updated · CNN · Jun 25
Oil Prices Fall After 13 Million-Barrel-a-Day Shock as Supply Surges and Demand Sinks
3 articles · Updated · CNN · Jun 25
Summary
Brent crude never settled above $115 despite a Strait of Hormuz disruption that cut roughly 13 million barrels a day—about one-fifth of global supply—and prices have since dropped back toward pre-war levels.
407 million barrels in storage, a 400-million-barrel IEA reserve release, lifted US sanctions on Russian and Iranian oil, and covert shipments of about 2 million barrels a day kept the market supplied.
800 million barrels of demand were destroyed between February and August, JPMorgan estimates, with China alone cutting use by 2.6 million barrels a day and EV adoption trimming another 1 million barrels a day.
93 million stranded barrels could return as Hormuz reopens, while Brazil, Venezuela and OPEC producers raise output; the IEA sees a 5 million-barrel-a-day global surplus next year.
19 million barrels at Cushing—its lowest since August 2014—show the market is not fully normalized, and inventory rebuilding in the US and China could revive demand later this year and into 2027.
The world dodged a $200 oil crisis, but are critically low US reserves about to trigger the next one?
After experts failed to predict the oil price crash, why should we believe their new warnings about market risks?
When 14% of Oil Supply Vanishes: How the 2026 Middle East Crisis Reshaped Global Energy Markets
Overview
Despite the largest oil supply shock in history, with the Middle East losing about 14% of global production, global oil prices fell sharply in June 2026. This surprising decline was driven by several factors working together: the US continued exporting oil, the Strait of Hormuz allowed more vessel passage than expected, and Oman opened temporary shipping routes. At the same time, US oil inventories rose unexpectedly, OPEC+ increased production, and weakening economic data reduced demand. These combined actions and market responses helped offset the supply disruption, leading to lower prices and highlighting the complex forces shaping today’s energy markets.