Goldman Sachs reported on Monday that global oil inventories are approaching their lowest levels in eight years, warning that the pace of their decline raises increasing concerns, in light of continued restrictions on supplies through the Strait of Hormuz.
Oil prices rose by about 6% in Monday trading, after Iran targeted a number of ships in the Strait of Hormuz.
The moves taken by US President Donald Trump to use the US Navy to open the shipping route in the Strait also contributed to escalating tensions to their highest levels since the ceasefire was announced four weeks ago.
According to the bank’s estimates, global oil stocks are sufficient to cover about 101 days of global demand, with the possibility of a decline to 98 days by the end of May.
He added that while “overall global inventories are unlikely to reach minimum operational levels this summer, the rapid depletion of inventories and the loss of supplies in some regions and products are cause for concern.”
He explained that global commercial refined product stocks decreased from 50 days before the US-Israeli war on Iran to 45 days currently.
The bank added that stocks of easily accessible refined products are rapidly approaching very low levels. (Arm News)
