{"id":506248,"date":"2026-06-22T23:49:10","date_gmt":"2026-06-22T23:49:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/506248\/"},"modified":"2026-06-22T23:49:10","modified_gmt":"2026-06-22T23:49:10","slug":"the-oil-crisis-is-easing-but-global-reserves-are-depleted","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/506248\/","title":{"rendered":"The oil crisis is easing, but global reserves are depleted"},"content":{"rendered":"

A tenuous deal with Iran \u2014 and millions of barrels of oil now flowing through the Strait of Hormuz \u2014 has pushed oil prices lower than they\u2019ve been for months<\/a>. However, that doesn\u2019t mean prices will stay that way \u2014 or drop much further. A lot has to happen for the global oil market to get back to normal, including replenishing global inventories<\/a> that helped weather this crisis in the first place. <\/p>\n

Even though the world has been dealing with the largest oil market disruption in history, according to Tom Seng, a professor of energy finance at Texas Christian University, \u201cthings could be a lot worse.\u201d <\/p>\n

Seng said that the average gas price has been more manageable here because of all the oil the U.S. and other countries had in storage.<\/a><\/p>\n

\u201cWe did not get $5, but we didn’t have any rationing,\u201d he said.<\/p>\n

But now, strategic reserves \u2014 the oil that the U.S. government stores<\/a> \u2014 are at their lowest level in 40 years. Commercial inventories have also been drawn down. Before the world can stop relying on its backup oil, a lot needs to be dealt with, like rerouted ships and damaged infrastructure, said Garrett Golding, assistant vice president at the Federal Reserve Bank of Dallas.<\/p>\n

\u201cFields that need to be restarted throughout the Persian Gulf that have been shut in since the beginning of this will take, in some cases, months to get back to full capacity,\u201d Golding said. \u201cWe’re still likely dealing with an oil market that has to rely on inventory drawdown for the next several weeks, if not longer.\u201d <\/p>\n

Only after supply and demand rebalance can countries start to rebuild their reserves again. Skip York, a nonresident fellow at Rice University\u2019s Baker Institute, said the U.S. should do it sooner than later. <\/p>\n

\u201cYou never know when the next crisis is coming,\u201d he said. <\/p>\n

The U.S. was worse prepared for Iran, York said, because it didn\u2019t aggressively stock up on oil after the Russian invasion of Ukraine: \u201cThe next crisis happened, and we were starting at a much lower level.\u201d <\/p>\n

Lots of countries could end up replenishing their reserves at the same time. <\/p>\n

\u201cThere’ll be a demand to fill reserves, which would be in addition to the whole normal global demand picture,\u201d said Seng at TCU.<\/p>\n

Elevated global oil demand means that Seng is not optimistic for consumers. \u201cI don’t see pre-war oil prices for at least a year, if that,\u201d he said.<\/p>\n

Related Topics<\/p>\n","protected":false},"excerpt":{"rendered":"A tenuous deal with Iran \u2014 and millions of barrels of oil now flowing through the Strait of…\n","protected":false},"author":2,"featured_media":506249,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,30422,162123,85,46,6808,162684,114994],"class_list":["post-506248","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-gas-prices","tag-global-oil","tag-il","tag-israel","tag-oil-market","tag-oil-reserves","tag-strait-of-hormuz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/506248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=506248"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/506248\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/506249"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=506248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=506248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=506248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}