Global oil stocks near 22-year low, EIA says

Washington: Oil inventories across the world’s biggest economies are on course to drop to their lowest level since at least 2003, according to the US Energy Information Administration, which said top-consuming countries have been drawing down reserves at a record rate to offset the loss of more than 11 million barrels a day of Middle Eastern supply linked to the Iran war.

The EIA said on Tuesday that total oil inventories held by members of the Organisation for Economic Cooperation and Development are expected to decline to just under 2.3 billion barrels by December. The forecast is based on its current assumption that shipping through the Strait of Hormuz is unlikely to return to pre-conflict levels until early 2027.

Oil prices fell about 5% on Tuesday after Iran and Israel said they had stopped attacking each other following an appeal by US President Donald Trump. Brent crude futures dropped $4.30, or 4.6%, to $89.95 a barrel by 1638 GMT.

US West Texas Intermediate crude also moved lower, falling $4.95, or 5.4%, to $86.35 a barrel.