Oil Inventories Hit 11-Year Low as Supply Crunch Persists

Global oil inventories have fallen to an 11-year low by May 26 amid the ongoing U.S.-Iran conflict and Strait of Hormuz disruptions. Prices have held above $90 despite IEA warnings of decelerating demand growth from EVs and weaker Chinese consumption. Steep backwardation, muted upstream capex, and a projected 1.8 million bpd 2026 deficit have kept futures supported near $98, with analysts warning full normalization may be delayed until 2027.