US oil inventories shrink as the summer driving season kicks off, tightening the supply buffer that once shielded markets from volatility.

The decline signals a fragile cushion for global oil prices. Investors eye the narrowing gap, anticipating tighter supply could push prices higher amid growing demand.

Energy analysts warn that a thinner buffer limits room for shocks, amplifying the impact of geopolitical or supply disruptions.

Market participants may adjust hedging strategies and reallocate capital toward commodities with tighter supply curves, reshaping portfolio allocations across sectors.