Global Oil Supplies Strained Despite Reopening of Strait of Hormuz

The reopening of the Strait of Hormuz following a memorandum of understanding between Iran and the United States may provide relief to global energy markets, but analysts warn that oil inventories remain under severe pressure, David Goldman reported for CNN Business.

Global energy markets are assessing the impact of months-long supply disruptions.

According to analytics firm Kpler, the world lost approximately 1.15 billion barrels of oil supply during nearly four months of conflict in the Middle East.

The disruption has left global oil markets in a fragile position.

Strategic petroleum reserves maintained by the International Energy Agency are reportedly at their lowest levels since 1990, while the US Strategic Petroleum Reserve has fallen to a 43-year low.

Commercial oil inventories have also declined significantly. Global stockpiles have dropped by an estimated 190 million barrels in recent months.

Storage levels at Cushing, Oklahoma—one of the most important oil distribution hubs in the United States—have reportedly reached operational stress levels, raising concerns about the ability to maintain efficient pipeline flows.

Analysts warn that even with the Strait of Hormuz reopened, oil exports from the Persian Gulf may not recover quickly enough to replenish inventories before supply shortages emerge.

As a result, energy prices could remain elevated despite the easing of geopolitical tensions.