Global strategic oil reserve rebuilding

Governments are set to buy millions of barrels of oil through 2028 to rebuild emergency reserves depleted by drawdowns to plug a gap in global supply caused by the U.S.-Israeli war on Iran. The IEA coordinated a record 400 million-barrel release after disruptions in the Strait of Hormuz drove crude prices sharply higher. Replenishing those reserves could add up to 664,000 barrels per day of demand by third quarter 2027, according to Kpler, helping to absorb some of the excess supply expected next year as OPEC+ continues to unwind production cuts. The United States, which released 172 million barrels under the IEA programme, is expected to begin receiving oil back later this year under exchange agreements. China is building 11 new strategic oil storage sites, while India plans to more than double strategic petroleum reserve capacity. The Philippines is also developing a national strategic petroleum reserve system with support from Japan.