Overview
- Severe restrictions on tanker traffic through the Strait of Hormuz have cut a key channel for roughly one-fifth of global oil flows, forcing governments and companies to tap emergency and commercial stockpiles to keep supplies moving.
- Coordinated releases, including a U.S. pledge of 172 million barrels, have drawn the Strategic Petroleum Reserve down to roughly 357–365 million barrels, a level near the lowest in decades.
- Multiple oil executives told reporters they privately warned the White House that fuel inventories are 'dangerously low' and that gasoline prices could spike in mid-to-late June, a claim the White House has publicly disputed.
- Diesel, jet fuel and other refined-product stocks are approaching critically low levels, which could disrupt truck freight, agriculture and air travel and push consumer prices higher in coming weeks.
- The IMF expects global inventories to fall to about 7.5 billion barrels by July and analysts say markets will be more vulnerable into the third quarter, meaning any further shock could trigger a rapid and sustained price surge and prolonged recovery for supplies.