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Asian Oil Markets Hit Minimum Operating Levels; Europe and U.S. Face Supply Crunch

Oil inventories across Asia have reached critically low operating thresholds, according to Jeff Currie, Carlyle's chief strategy officer of energy pathways. Europe and the United States face comparable pressures within weeks. The tightening supplies stem from Middle East disruptions following the Iran war outbreak earlier this year, which severely restricted shipping through the Strait of Hormuz and curtailed regional energy exports. Global inventory figures mask the true availability crisis. Substantial portions of stored crude are required to maintain pipeline and storage system integrity, leaving minimal volumes for actual market use. Europe faces potential shortages by July as summer demand accelerates. The U.S. may experience comparable pressures simultaneously. Current relief from American oil exports to Europe proves temporary. Strategic Petroleum Reserve flows are insufficient to sustain long-term demand. Refined product markets already show strain, with diesel prices surging past jet fuel amid constrained supplies across major trading hubs.