Iran war is the “largest supply disruption in the history of global oil markets”
March 12, 2026
I am not sure right now any of these inventoried number matter as it is all about Iran and the war and the headlines, but at some point, they will matter.
The DOE inventory report had crude oil up 3.82 million barrels to a total of 443.103, and last year they were 435.223, and the three-year average is 454.093. The IEA coordinated a release of barrels from strategic petroleum reserves from around the globe to the tune of 400 million barrels, the largest on record ever. The market sold off after the news hit the wires, and then it rallied back.
Gasoline supplies were down 3.65 million barrels putting total gasoline supplies at 249.476 and last year they were 241.101, and the three-year average is 237.060.
Distillates were down 1.35 million barrels, putting total supplies at 119.431 million barrels and last year they were 117.595, and the three-year average is 118.1403.
Propane inventories down 1.676 million barrels putting total supplies at 71.675 million barrels. Lat year they were 45.259 million and the five-year average is 46.583 million. I told you exports would be watched; exports were up 400,000 bpd week over week.
Ready to use propane is now 23 million barrels more than last year at this time. That is a big number. Midwest inventories were down 54,000 barrels, putting total stocks at 13.752 and last year they were 9.041. Gulf Coast inventories were down 825,000 barrels putting total stocks at 51.775 million and last year they were 30.395.
More activities overnight in the Middle East has the market higher again today.
That Strait of Hormuz remains effectively closed, with the IEA calling this war the largest supply disruption in the history of global oil markets.
Markets are higher despite the IEA’s announcement of a 400-million-barrel crude oil release from strategic reserves, more than double the previous record release of 182 million barrels in 2022. The planned release represents about 30% of total emergency reserves across 32 member counties, equivalent to only about one month of volume typically moving through the Strait of Hormuz. While this action will help cushion the immediate supply shock, it is fundamentally a temporary measure, and the market appears to be recognizing that this morning.