Hormuz Conflict Dries Up Global Oil Reserves

The world's emergency oil reserves are dwindling rapidly due to the ongoing conflict around the Strait of Hormuz, threatening to cause a new oil price spike. Over the past six months, ten out of eleven countries holding strategic stockpiles have drawn down their supplies at an alarming rate, with some countries releasing up to 29% of their reserves in just three months.

The United States, for example, has taken out 122 million barrels from its Strategic Petroleum Reserve since March, but this is not a sale, it's an exchange that requires the original volume of oil, plus additional barrels, to be returned at a later date. This means that when the exchanges unwind, refiners will have to hand back more crude than they took, adding to the existing supply shortage.

The only country whose reserves are growing is Iran, which has seen its strategic inventory rise by 18.9% over the past three months due to its inability to export oil under the US naval blockade. However, this development may be short-lived as the conflict continues to escalate.