Global oil stockpiles are draining at record pace as Middle East conflict disrupts supplies.

Global oil stockpiles are draining at record pace as Middle East conflict disrupts supplies. Goldman Sachs reports visible crude and fuel inventories fell 8.7 million barrels daily in May, nearly double the average since fighting began. Oil exports through the critical Strait of Hormuz remain at just 5% of normal levels due to supply disruptions. Brent crude trades near $106 per barrel, up over 70% this year. The rapid drawdown is consuming emergency reserves built before the conflict, with governments already coordinating strategic reserve releases to stabilize prices. Weaker demand from China and falling US stockpiles compound the pressure, with Cushing hub inventories approaching critical extraction levels. The International Energy Agency warns markets could remain severely undersupplied through October even if conflict ends soon.