Oil inventories at the key United Arab Emirates storage hub in Fujairah have extended their sharp decline, falling 6.3% week-on-week to 6.982 million barrels.
The crash marks the fourth consecutive record low since the war in Iran broke out and underscores mounting supply strain in the region.
Indeed, the storage center is now down roughly 66% since the onset of the conflict, according to Fujairah Oil Industry Zone data reported by S&P Global on April 29.
Middle-Eastern oil crisis continues
For comparison, back in early March, both heavy and light distillate inventories were still above 8 million barrels.
What’s more, heavy distillates used in marine fuel and power generation fell 14% on the week to 3.058 million barrels, hitting a third straight record low.
Light distillates, such as gasoline and naphtha, dropped 2.7% to 2.680 million barrels, their second consecutive all-time low.
Middle distillates, which include jet fuel and diesel, moved in the opposite direction, rising 9.1% to a three-week high of 1.244 million barrels, extending a two-week rebound.
Brent crude hits a four-year record high
At the same time, Brent crude oil surged to $115 per barrel, its highest level since June 2022, driven by escalating tensions from the Iran-Israel conflict that continue to disrupt the energy market discourse.
Specifically, the rally is fueled by concerns over Iranian threats to critical shipping lanes, with the market factoring in potential disruptions in key export routes. At the same time, Washington is moving to tighten its pressure campaign by extending a blockade on Iranian ports.
This keeps crude prices elevated and sentiment broadly bullish, as traders position for prolonged volatility rather than a quick de-escalation.
In a separate escalation, Trump warned Iran in a Truth Social post that it “better get smart soon,” accusing the country’s leadership of failing to “get their act together.”
Featured image via Shutterstock
