economy
Global oil inventories drain at record pace amid Hormuz disruption
Global oil stockpiles are shrinking at record speed as Hormuz disruptions strain crude and fuel markets
TL;DR
- Global oil inventories are shrinking at the fastest pace on record.
- Stockpiles fell by approximately 4.8 million barrels per day between March 1 and April 25.
- Disruptions in the Strait of Hormuz, carrying one-fifth of global oil and LNG trade, are a major cause.
- Commercial oil inventories may fall to "operational stress levels" by June and "operational floor" levels by September.
- US domestic fuel stockpiles are also below the five-year seasonal average.
- The EU has delayed plans for a permanent ban on Russian oil due to concerns about tightening fuel supplies.
- Potential US military operation "Project Freedom" in the Strait of Hormuz was mentioned.