**Title: ‘Tank Bottom’: Oil industry warns Trump administration that drained inventories threaten to spike gasoline prices

Four industry executives report that the oil sector has cautioned the Trump administration regarding a severe deficit in global petroleum supplies, comparable in magnitude to a Hormuz-sized gap, which is rapidly depleting stockpiles to critical levels. These reductions are projected to trigger a sharp increase in global energy costs over the coming weeks. According to sources, industry leaders have recently communicated these concerns to senior White House officials and Cabinet members as part of the administration’s continuous engagement with the U.S. energy sector.

The alerts were issued as recently as late last month, coinciding with data from the U.S. Energy Information Administration and other trackers indicating that refiners are increasingly tapping into storage tanks to offset fuel no longer arriving from the Middle East. “We are already at dangerously low levels,” stated one executive, who requested anonymity to discuss private dialogues with the government. “We have conveyed these concerns to the highest tiers of government regarding developments expected in mid-to-late June. I hope they are currently monitoring inventory levels. You are hitting tank bottom.”

Since the U.S. and Israel initiated military strikes three months ago, Iran has effectively blockaded the Strait of Hormuz, resulting in the most significant disruption to crude oil flows in history. Nations are currently drawing down oil and fuel reserves to compensate for the supply shortfall from the Middle East. However, with inventories now at precarious lows, various companies and market analysts are warning that a price surge could occur later this month.

While some discussions have served as broad warnings, others have targeted specific shortages, such as jet fuel scarcity on the West Coast, according to a second individual involved in the talks. In response, a White House official rejected the claims, stating, “Politico’s anonymous sources are wrong,” and denying that senior staff had received private warnings from the industry. Similarly, an Energy Department official noted that while the agency maintains regular contact with energy leaders, there have been “no such discussions” regarding inventory levels.

Publicly, executives from major firms like Exxon Mobil and Chevron have also raised alarms, warning last week that fuel prices are set to rise if inventory declines continue at their current rapid pace. As of Wednesday, the U.S. average gasoline price stood at $4.26 per gallon, according to AAA. This represents an increase of $1.28 since the onset of the conflict, though it remains slightly below the $4.50 per gallon levels seen a few weeks prior.

Source: Yahoo News Generated at: 2026-06-04 12:03:39 UTC