Moscow, Russia – Economic data and analyses in the global energy sector warned. They warned of a rapid decline in global crude oil inventories. They have reached very alarming and critical levels at present. This comes amid faltering diplomatic efforts aimed at finding a solution. Attempts to reopen oil tanker traffic have not succeeded. Specifically through the strategic Strait of Hormuz so far. In addition to the continuing repercussions of the recent conflict in the region.
On the other hand, Reuters quoted important statements and expectations. Prominent officials and analysts in the energy sector spoke. They confirmed that global oil inventories are approaching the danger zone. They are recording historically unprecedented low levels. As a result, this may lead to sharp price increases. Especially in the markets if the current frightening decline continues.
Decline in Oil Inventories Threatens Global Market Stability
In a related context, Neil Chapman made very worrying statements. He holds the position of Vice President of the global ExxonMobil company. He said the decline in oil inventories directly threatens market stability. He indicated that the price of Brent crude may rise strongly. It could reach between $150 and $160 per single barrel. This is in case the current supply crisis worsens further and faster.
Furthermore, pressures have increased over the past few months. Withdrawals from commercial inventories contributed to limiting the crisis. Strategic reserves also played an important role in containing prices. They prevented them from rising above the $100 per barrel level. Despite this, disruptions related to the war with Iran continue. The disruption of navigation through the strategic and vital Strait of Hormuz continues.
Trump’s Statements and the Future of Global Oil Inventories
On another note, urgent statements were issued by the US President. Donald Trump spoke about an imminent agreement. This agreement aims to reopen the vital strait for maritime navigation. Despite this, tanker traffic has not returned to its usual normality. This comes amid continuing fears of global supply shortages. And growing anxiety about the future of global oil inventories currently.
In addition to the above, the International Energy Agency warned clearly. It indicated that continuing to draw from inventories is very dangerous. It may push them to unprecedented critical levels soon. Especially with the entry of the global peak summer demand season. Analysts at JPMorgan bank also predicted a rapid rise. Specifically during the second half of this current June. That is if oil flows through the strait do not resume immediately.
Depleting Reserves Threatens Energy Markets with a New Shock
In the United States, oil inventories declined significantly and surprisingly. They reached only 791 million barrels recently. This is considered the lowest level recorded since February 2024. This came after they dropped by about 64 million barrels. That is since the beginning of the recent war on Iran and its economic repercussions.
In conclusion, withdrawals from the strategic petroleum reserve are currently underway. This is done within a comprehensive and carefully studied international plan. The plan aims to release 400 million barrels into open markets. This aims to limit the crazy price hikes. At the same time, economic experts warned against depleting inventories. Depleting protective oil inventories may lead to a major crisis. It could create a new price shock in global energy markets.
