Oil Prices Rally on Sharp US Inventory Draw and Hormuz Supply Disruptions

Key Facts

1The EIA reported global inventories are falling by 6.3 million b/d in Q2 2026 due to the closure of the Strait of Hormuz.

2Official DOE data showed a seventh consecutive weekly decline in US crude inventories, falling by 7.23 million barrels.

3The US Strategic Petroleum Reserve has seen a total drawdown of 66.2 million barrels since the start of the conflict with Iran.

Amid escalating geopolitical tensions in the Middle East, energy markets are facing a severe supply crunch that has propelled prices upward. The US Energy Information Administration (EIA) reported that global inventories are declining at a rate of 6.3 million barrels per day in Q2 2026 due to the closure of the Strait of Hormuz. Official data confirmed a seventh consecutive weekly decline in US crude inventories by 7.23 million barrels, while the US Strategic Petroleum Reserve has been drawn down by 66.2 million barrels since the conflict with Iran began.

This sharp inventory drawdown significantly exceeded market expectations, as American Petroleum Institute (API) data showed a decline of 9.119 million barrels on June 9, 2026, compared to forecasted draws of only 3.4 million barrels per market data. Compared to the previous quarter, disruptions in the Strait of Hormuz—a transit point for nearly 20% of global oil consumption—have shifted the supply-demand balance into a structural deficit, prompting warnings of sustained price volatility from industry majors like ExxonMobil and Chevron.

Traders should monitor current price levels closely as global supply remains constrained ahead of the next market open. Looking ahead, the upcoming OPEC meeting remains a critical catalyst as investors look for a collective response to the Hormuz supply gap. Additionally, inflation data from major economies will be key in assessing how rising energy costs might influence global monetary policy decisions.