Analysts warn global crude stockpiles have fallen to operational minimums despite easing Hormuz tensions, pressuring prices.
Brent crude dropped below $80 per barrel as concerns over depleted global oil inventories overshadowed optimism about a potential reopening of the Strait of Hormuz. Analysts note that even if the key chokepoint reopens, regional production would not recover immediately, leaving supply tightness unresolved.
In May, analysts at Carlyle Group and Energy Aspects warned that storage withdrawals to avert shortages during the Hormuz crisis had pushed inventories to “minimum operational levels” in parts of the world by July. The drawdowns have left little buffer against further disruptions, despite easing geopolitical risks.
The price decline reflects market anxiety over the mismatch between supply expectations and actual inventory levels, with no immediate rebound in sight for regional output.