Overview
- The IEA’s May report finds that losses tied to the Strait of Hormuz have drained global oil stocks at a record pace and turned this year into a supply shortfall.
- U.S. government data show commercial crude fell by 4.3 million barrels and gasoline by 4.1 million, countering an industry estimate that pointed to a gasoline build.
- IEA members are releasing 400 million barrels from emergency stocks and the U.S. Strategic Petroleum Reserve shed 8.6 million barrels to 384.1 million, which the agency views as a temporary buffer.
- OPEC+ approved a 188,000 barrel-per-day increase for June after the UAE left OPEC, a modest adjustment that analysts say will not close the supply gap.
- The Strait of Hormuz is a vital oil lane, so disrupted traffic strands Gulf crude, lowers refinery runs, and crimps jet fuel and petrochemical output, which can push up airfares and goods costs for households.