EIA Alerts Oil Inventories at 2003 Low
The U.S. Energy Information Administration has warned that crude oil stockpiles in the world's largest economy could drop to their lowest levels since 2003 due to draws from strategic reserves to compensate for production losses caused by the Iran war. It forecasts that oil inventories among OECD member countries will fall below 2.3 billion barrels by December, as challenges continue in restoring navigation through the Strait of Hormuz. This intense withdrawal from reserves could lead to a sharp increase in oil prices in the coming months, with Brent crude expected to reach about $105 per barrel. Additionally, forecasts indicate that global oil demand may experience its first contraction since the COVID-19 pandemic in 2023, shrinking by 1.1 million barrels per day.
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