U.S. Energy Inventories are Tightening

Being a net exporter of energy, the United States was protected from a supply shock when the flow of oil was disrupted through the Strait of Hormuz during the Iranian conflict. Major disruptions and price swings were avoided, but inevitably there has been an impact on prices due to the global nature of the energy market. So as we head into the summer travel season, many consumers (and investors) are looking to the pump. Today’s weekly market commentary examines U.S. energy inventories and what that might mean for consumers and investors.

The chart plots two data sets beginning in 2006 running through to present day. The shaded red area represents the year-over-year growth of petroleum inventories in the United States. Then, the dotted blue line represents the actual petroleum inventories (including the strategic petroleum reserve) in the United States, measured in billions of barrels.

As can be seen from the chart, after reaching a peak in 2020, inventories have declined to the lowest levels over the past 20 years. The author explains, “inventories have been pressured lower by a surge in exports, heightened refining activity, and an emergency 172-million-barrel release from the Strategic Petroleum Reserve earlier this year. In effect, these drawdowns have reduced some of the U.S. supply buffer heading into the summer.” – WFII Chart of the Week June 9, 2026

In terms of what this means for investors, and consumers, the piece states in the close, “upcoming seasonal demand could intensify these pressures, as inventories typically decline during the summer. For consumers, this will likely translate into higher gasoline prices over the coming months. In our view, we do not recommend chasing returns in energy with oil prices already elevated. Instead, we believe taking profits in energy and rotating exposure to our favorable areas such as Precious or Industrial Metals, may offer greater upside.” – WFII Chart of the Week June 9, 2026