Global oil markets have been hit with fresh concerns about falling inventories amid the supply losses due to the ongoing closure of the Strait of Hormuz, which has removed more than 14 million barrels per day of crude output from global supply.
Declining Inventories
Global inventories declined by another 117 million barrels in April after falling 129 million barrels in March, according to the May 2026 Oil Market Report by the International Energy Agency (IEA).
The agency said that “More than ten weeks after the war in the Middle East began, mounting supply losses from the Strait of Hormuz are depleting global oil inventories at a record pace.” Total supply losses from Gulf producers topped 1 billion barrels, with more than 14 million b/d of crude output offline. IEA calls it “an unprecedented supply shock.”
Disruptions linked to the Strait of Hormuz had affected oil output from Gulf countries by 14.4 million b/d below pre-war levels, offsetting higher production and exports from the Atlantic Basin.
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