US oil supplies fall as exports hit record amid Iran war
Updated
Updated · MarketWatch · May 7
US oil supplies fall as exports hit record amid Iran war
12 articles · Updated · MarketWatch · May 7
The EIA said total U.S. oil and product stocks, including the SPR, fell 24.1 million barrels in the week to 24 April as exports reached 14.2 million barrels a day.
Analysts warned diesel inventories have dropped to about a 20-year low of 102.3 million barrels, while gasoline stocks fell 2.5 million barrels and sit 4% below the five-year average.
With summer travel approaching, diesel averaged $5.67 a gallon and U.S. gasoline topped $4.50, as the country helps offset global supply disruptions caused by the Iran war.
As America exports record fuel to its allies, will its own gas pumps run dry before the Fourth of July?
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How the 2026 Strait of Hormuz Closure Reshaped Global Oil Flows and U.S. Energy Security
Overview
In March 2026, Iran's closure of the Strait of Hormuz through targeted attacks caused a historic 17 million barrels per day drop in Gulf oil exports, triggering a global supply shock. This led to soaring oil prices and a sharp rise in U.S. gasoline costs, while maritime insurers withdrew coverage, paralyzing shipping and forcing costly rerouting of energy supplies. The crisis sparked a surge in U.S. crude exports despite refinery mismatches and infrastructure limits, strained global markets, and intensified geopolitical tensions. Gulf states invested in alternative routes, and China expanded clean energy exports. Domestically, American consumers faced higher fuel costs and inflation, highlighting deep vulnerabilities in energy security and market resilience.