US commercial crude oil inventories are at a decades low, with data from the US Department of Energy showing an increase of 3 million barrels in US commercial crude oil inventories last week. President Trump announced the termination of the ceasefire agreement, and Andy Lipo, President of Houston based Lipo Oil Consulting, said that the most worrying situation in the oil market later this year will come true when inventory drops to the minimum operating line. Energy industry executives and analysts have warned that if shipping in the Strait of Hormuz is blocked again, the energy security of the United States will be severely threatened, and the market has not predicted a repeat of the oil crisis in which oil prices broke through $100 per barrel this spring. If the United States is forced to continue using its strategic reserve of crude oil, it will lack sufficient reserves for emergency backup, and oil prices will rise again.
