economy
May 11, 2026
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.