U.S. Crude Oil Inventories Hit Eight-Week Low as Oil Prices Set to Surge Above $120 Per Barrel

According to Jin10 on June 7, U.S. crude oil inventories have declined for eight consecutive weeks, falling to their lowest level since February 2024. Morgan Stanley forecasts that unless shipping through the Strait of Hormuz returns to normal, crude oil prices could surge rapidly in late June as global reserves approach critical lows.

Analysts warn a second wave of price shocks is possible if the buffer mechanism becomes depleted. If crude rises to $120 per barrel and persists for one year, U.S. economic growth could decelerate by approximately 0.4 percentage point, though Europe and Asia face higher energy inflation vulnerability.