JPMorgan warns usable global oil inventories could reach critical floor

JPMorgan is warning that usable global oil inventories could approach a critical operational floor if disruption through the Strait of Hormuz persists.
According to the cited analysis, global inventories began the year near 8.4 billion barrels, but only around 800 million barrels were considered drawable without compromising normal system operations. JPMorgan estimates inventories could reach an operational floor near 6.8 billion barrels this month if Hormuz remains closed.
The concern is that sufficiently depleted inventories could create physical infrastructure constraints, including reduced pipeline pressure and refinery disruptions. Under that scenario, the oil market would face a physical supply problem rather than only higher prices.