Global Oil Inventories in Dire Straits, Next Price Surge Could Rattle Economy and Markets

BlockBeats News, June 7th, as the agreement for oil tanker passage through the Strait of Hormuz remains elusive, global oil inventories are plummeting to dangerously low levels. Industry executives and analysts warn that we may see another oil price shock in the coming weeks, with the severity significant enough to spill over into broader financial markets.

JPMorgan Chase predicts that unless the strait passage returns to normal, oil prices could spike rapidly in late June. U.S. crude inventories have fallen for eight consecutive weeks, reaching the lowest level since February 2024. Analysts point out that the risk of a second round of price shock is very real and could stem from the depletion of buffer mechanisms rather than the strait's closure itself.

Investors believe that the Strait of Hormuz has become a persistent geopolitical bottleneck, and even if tensions ease, oil prices are unlikely to drop below $70. Higher oil prices pose a "mild headwind" to the U.S. economy, but Europe and Asia are more vulnerable to sustained energy inflation. If crude oil rises to $120 per barrel and remains at that level for a year, U.S. economic growth could slow by around 0.4 percentage points.