U.S. commercial crude oil inventories declined by 2.3 million barrels to 457.2 million barrels in the week ending May 1, according to data released Wednesday by the Energy Information Administration. The draw marks the second consecutive weekly decline, following a 6.2 million barrel drop the prior week, as the ongoing closure of the Strait of Hormuz continues to strain global energy supplies.
Sharp Declines Across Product Categories
The American Petroleum Institute, which released its own estimates earlier this week, reported an even steeper crude draw of 8.1 million barrels for the same period — well above the 2.8-million-barrel decline analysts had expected. Gasoline inventories fell by 6.1 million barrels and distillate stocks dropped by 4.6 million barrels, according to API data. Cushing, Oklahoma hub inventories fell by 1 million barrels and are now estimated below 29 million barrels.
The EIA also reported that the Strategic Petroleum Reserve shed 5.2 million barrels during the week, bringing the SPR to 392.7 million barrels — its lowest level since November 2024.
Hormuz Crisis Drains Global Reserves
The inventory declines come as the Strait of Hormuz remains largely closed to tanker traffic more than two months after the outbreak of the U.S.-Israel conflict with Iran in late February. The closure has disrupted roughly 20 percent of global oil supply, prompting what the International Energy Agency has called the “greatest global energy security challenge in history”.
Goldman Sachs warned Monday that global oil stocks have fallen to approximately 101 days of demand — the lowest in nearly eight years — and could decline to 98 days by the end of May. JPMorgan analysts said OECD oil inventories could hit “operational minimums” between May 9 and May 30, “at which point price increases become exponential rather than linear”.
The Financial Times reported that global crude inventories fell by nearly 200 million barrels in April alone, a rate of 6.6 million barrels per day, even as demand contracted by roughly 5 million barrels per day — the largest demand drop since the pandemic.
Amrita Sen, founder of consultancy Energy Aspects, warned that stockpiles could be “exhausted by the end of June” if the war drags on, according to Fortune. Brent crude has remained above $100 per barrel for nearly two weeks, and analysts say prices are unlikely to ease soon even if the strait reopens, given infrastructure damage and the backlog of stranded cargoes.
