EIA warns oil inventories to hit multi-decade lows
Global oil stockpiles are projected to drop to 2.3 billion barrels by December as conflict-related output losses drain reserves at a record pace. The EIA expects Brent crude to average 105 dollars per barrel through July while high prices and supply constraints cause global demand to shrink.
The United States Energy Information Administration expects OECD oil inventories to fall below 2.3 billion barrels by December. This level represents the lowest stockpile since the EIA began tracking records in 2003. Investors face a supply crunch as 11 million barrels of daily Middle Eastern output remain offline.
The EIA Short-Term Energy Outlook released Tuesday, June 9, afternoon projects a record pace for global inventory drawdowns. The EIA assumes marine traffic through the Strait of Hormuz will not return to pre-conflict levels until early 2027. Lost production from the war in Iran has forced the market to rely on existing reserves.
