New Delhi, May 6 Global oil inventories that can be tapped without disrupting supply chains could be exhausted within three weeks, raising the risk of 'operational stress' in markets by mid‑June, a report has said.
The report from investment bank JP Morgan said that the global oil inventory stood at 8.4 billion barrels of oil in early 2026, but only a small portion is usable without pushing the system into strain in order to keep the circulation network working.
"Of the 8.4 billion barrels, we estimate only 0.8 billion are realistically available without pushing the system into operational stress," it said.
The investment bank said that approximately 280 million barrels have already been drawn down, leaving about 580 million barrels of usable inventories available, but it could be exhausted by early June.
As oil markets remain volatile following tensions in the Middle East and disruptions through the Strait of Hormuz, the report said that the issue facing the market is not the total disappearance of oil supplies, but the lack of accessible inventories to enable smooth functioning of the system.
"The system does not fail because oil completely disappears, it fails because the circulation network no longer has enough working volume," the report said.
Some inventories remain tied up in pipeline requirements, minimum tank levels and other operational requirements, limiting the amount available to the market.
Moreover, international oil benchmark Brent crude dropped by 2.30 per cent to $107.33 a barrel, while US West Texas Intermediate crude declined by 3.08 per cent to $99.12 a barrel.
The latest moves in crude prices were triggered by comments from US President Donald Trump, that the United States would temporarily halt "Project Freedom", a military initiative launched earlier to escort commercial vessels through the Strait of Hormuz.
President Trump said in a social media post that the decision followed progress in negotiations with Iran toward a final agreement.
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