U.S. Oil Reserves Hit 40-Year Low Amid Global Supply Disruptions

The global oil market is facing a severe supply deficit following the blockade of the Strait of Hormuz and sabotage of Saudi Arabia's East-West pipeline. Strategic reserves in major economies are depleted, with U.S. stockpiles hitting a 40-year low. Under a worst-case scenario, Brent crude could climb to $120 per barrel, posing a risk to the global financial system. The blockade of the Strait of Hormuz has removed approximately 2.5 million barrels of oil per day from the market, representing about 4% of global supply. The crisis is intensified by the infrastructure attack in Saudi Arabia; reserves at the Yanbu port on the Red Sea coast are estimated to last only one week. If the pipeline is not repaired shortly, exports from the facility will cease entirely. Macroeconomist Artem Loginov told Pravda.Ru that this represents the most significant supply chain disruption on record, noting that the market lacks spare capacity to absorb further escalations without uncontrolled price hikes.