OECD Oil Inventories Hit Lowest Levels Since 1990

Oil inventories across member states of the Organisation for Economic Co-operation and Development fell in May to their lowest levels since 1990. This decline occurred as governments drew down strategic reserves to mitigate supply disruptions in the Persian Gulf, specifically those concentrated near the Strait of Hormuz, which threatened the flow of global crude exports.

The International Energy Agency reported that OECD stocks have decreased by approximately 163 million barrels since the start of the Middle East conflict. To stabilize global markets against volatile price surges and ensure energy security, the agency coordinated a massive release of 400 million barrels from emergency reserves. As of June 12, 252 million barrels of these emergency stocks have already been injected into the market.

While the pace of these reserve releases is expected to slow through June and July as regional conflict de-escalates, the agency warns that the cumulative effect of high prices will likely suppress consumer and industrial demand for the remainder of the year. This economic pressure is expected to create a significant drag on growth in the energy sector.

Consequently, the International Energy Agency projects a total demand decline of 1.1 million barrels per day compared to 2025 levels. This forecast suggests that despite the efforts to stabilize supply through strategic releases, the global market remains fragile and sensitive to the lingering effects of Middle East instability.