Providing some relief in March, the International Energy Agency coordinated the release of 400 million barrels from the strategic reserves of its member countries, with the U.S. Strategic Petroleum Reserve
set to provide nearly half of the backup supplies.
Demand curbs, including
flight cuts from global airlines and restrictions mostly in Asian countries, have also helped manage the disruptions in crude production. According to J.P. Morgan, global oil demand fell by an average of 2.8 million barrels a day in March, and was tracking a larger decline of 4.3 million barrels a day in April and an even steeper decline of about 5.5 million barrels a day in May.
“A core assumption of our framework is that the accelerating pace of oil inventory depletion will ultimately force the reopening of the Strait of Hormuz, one way or another,” J.P. Morgan analysts said in a recent note.