Global oil stocks are depleting at a record pace as supply losses mount.

More than ten weeks after the war in the Middle East began, mounting supply losses stemming from disruptions to shipping through the Strait of Hormuz are depleting global oil inventories at a record pace.

With tanker flows through Hormuz still heavily restricted, cumulative supply losses from Gulf producers already exceed 1 billion barrels, with more than 14 million barrels per day of oil now shut in – an unprecedented supply shock.

Saudi Arabia and the United Arab Emirates have successfully redirected some exports to terminals loading outside of the strait. Producers outside of the Middle East have also pushed output higher and lifted exports to record levels in response to the crisis while the historic emergency oil stock release by IEA member countries has provided an additional buffer to markets. Even so, observed global inventories, including oil on water, were drawn down by 250 million barrels over March and April, or by 4 million barrels per day.

/IEA/