The U.S. Strategic Petroleum Reserve hits a three-year low of 349.2 million barrels, nearing levels not seen since the Reagan administration in 1983.
OPEC oil output in May hit its lowest in more than two decades, a Reuters survey found, as a U.S. naval blockade cut Iran's exports and Iran's effective closure of the Strait of Hormuz slashed exports by other Gulf producers.
Brent crude and WTI prices were showing relatively muted reactions to the resumption of direct conflict between the U.S. and Iran.
Oil prices rose on Wednesday after the U.S. launched military strikes against Iran. The U.S. military said it had completed strikes against Iranian military targets near the Strait of Hormuz.
Oil prices climbed about 1% on Wednesday, moving away from a seven-week low touched in the previous session, after the U.S. military launched new strikes against Iran and as market data showed another large draw in U.S. crude stocks.
Energy markets' worst nightmare has been playing out for more than 100 days, but one would hardly know it by looking at crude-oil futures.
Kuwait's oil inventories have declined sharply as a result of two Very Large Crude Carriers (VLCCs) which exported crude through the Strait of Hormuz with their AIS transponders switched off, according to a note from data provider Kpler on Tuesday.
Commerce Department data showed exports rose 2.6 percent in April to $327.1 billion.
President Donald Trump has repeatedly said a deal with Tehran to reopen Hormuz is close, but such an agreement still has not materialized.
Countries will build larger emergency crude reserves to reduce their vulnerability to future energy shocks.
Brent crude and WTI prices were dropping on Tuesday as Iran and Israel agreed to end direct operations against each other.
Iraq and the UAE are fast-tracking alternative pipelines to reduce dependency on the Strait of Hormuz, which remains effectively shut. Oil comprised over half of Iraq's GDP in 2025 as the country remains dependent on the Persian gulf.