Global oil inventories fell at a record pace in April amid the war in the Middle East, which is restricting supplies and raising the risk of a new price spike. This was reported by the Financial Times, citing data from S&P Global Energy, according to UNN.
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According to analysts' estimates, global crude oil inventories decreased by nearly 200 million barrels, or 6.6 million barrels per day. This occurred even despite a sharp drop in demand of approximately 5 million barrels per day – the largest contraction in history, including the COVID-19 pandemic period.
This is a massive figure; it is well beyond the normal range. A market crisis is inevitably approaching
Supply loss exceeds the drop in demand and pushes prices up
According to experts, the market has already lost about 1 billion barrels due to the war with Iran.
Saudi Arabia has lowered oil prices for Asia, but they remain near historic highs06.05.26, 00:53
Demand is falling fast, but it is being outpaced by the loss of supply. Higher crude oil prices are still ahead
The main factor remains the restriction of movement through the Strait of Hormuz and strikes on energy infrastructure.
Inventories are approaching an eight-year low
According to Goldman Sachs, global oil inventories are falling to their lowest level in eight years. The world has approximately 45 days of refined product stocks remaining, including gasoline and diesel.
The speed of depletion and supply losses in some regions and products is concerning
Traders warn that prices could spike sharply if inventories fall below critical levels in the coming weeks.
In Northern Europe, jet fuel stocks have already reached a six-year low, while in the US, gasoline reserves are declining ahead of the summer season.
The worst of the crisis is still ahead