US-Iran Conflict Drains 3 Million Barrels Daily, Citi Warns Crude Inventory 70-Day Red Line Approaching

The US-Iran conflict and Strait disruptions have driven record global inventory drawdowns, with OECD stockpiles nearing the 70-day safety threshold seen during the second oil crisis, while diesel product shortages have already emerged first. Despite surging oil prices and refining margins, Citi still forecasts that fourth-quarter agreement implementation will push Brent crude back to the $60 range by 2027.