Global oil markets are experiencing an unusual calm despite a major supply shock. The Strait of Hormuz remains largely shut, impacting significant global supply. However, prices have retreated from highs. Uncertainties about global inventories, China's demand, and the true state of consumption create a precarious situation. Experts are operating with limited information, making the market's stability fragile.

Global inventories are drawing down at a record pace, leaving the market increasingly vulnerable to fresh disruptions.

Global oil inventories are running dangerously low as a deal to re-open tanker traffic through the Strait of Hormuz has proven elusive, and industry executives and analysts warn…