Oil stockpiles are set to hit record lows due to Hormuz closure

The world’s oil stockpiles are set to hit near record lows.Prior to the current war in the Gulf, inventories were near a decade high at just over 8 billion barrels at the end of February. At the end of April, stockpiles had fallen to 7.8 billion barrels, with global inventories expected to reach record lows of 7.6 billion barrels by the end of May if demand remains constant. If the Strait of Hormuz is still closed in September, the inventory level could fall to 6.8 billion barrels. A major “economic contraction” is expected to follow if levels continue to fall.