Goldman Sachs Sounds Fresh Alarm on Global Oil Stockpiles
Goldman Sachs Sounds Fresh Alarm on Global Oil Stockpiles Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.
Global oil inventories are falling at an accelerated rate, Goldman Sachs haswarned, noting April draws from inventories had run at double the rate until the end of March.
Since the start of May, global draws from inventories have been running at 8.7 million barrels daily, which is the highest ever, the investment bank’s analysts said.
“Physical markets continue to tighten, as estimated oil exports through the strait remain at a very low 5% of normal,” they said.
Earlier this month, Goldmansaidthat global oil inventories were crashing and approaching an eight-year low, with the rate of depletion so fast that it exposes the market to further shocks.
Total oil inventories globally have dropped to about 101 days of expected demand, the lowest level in nearly eight years, the bank’s analysts warned, adding that while inventories are "unlikely to hit minimum operational levels this summer, the speed of depletion and supply losses in some regions and products is concerning.” Citi, meanwhile, earlier this week said that traders may be underestimating the risk of a longer-term oil supply disruption from the Middle East war.
“It appears increasingly likely, in our view, that the Iranian regime will disrupt SoH flows for some time,” the banktoldits clients in a note, as quoted by CNBC, predicting that should the disruption continue, oil prices could hit $200 per barrel.
In the nearer term, the bank sees Brent crude inching up to $120 per barrel from the tanker traffic disruption in the Persian Gulf.
On the other hand, if Iran and the United States reach a peace deal by the end of June, Brent crude could retreat to $80 per barrel by the end of the year, according to Wood Mackenzie.
Currently, Iran isreviewingthe United States’ latest peace proposal, after President Donald Trump this week signaled optimism about a deal but also issued a threat to Iran unless things went his way.
Saudi Arabia Forced to Boost Fuel Oil Imports as Gas Output Dips Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.
US Crude Oil, Oil Product Inventories Come Crashing Down Three Supertankers Carrying 6 Million Barrels Exit Strait of Hormuz UK, France Lead 30-Nation Military Push to Reopen Strait of Hormuz Venezuela Oil Exports Hit Seven-Year High The Strait of Hormuz May Reopen, But the System Has Already Broken Venezuelan Crude Will Eventually Lower US Gas Prices: Chevron Exec The Oil Supply Shock Will Scar the World for Years Infrastructure Funds Now Capture 77% of New Climate Capital The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | ▲ +0.34% |
| WTI Crude | $96.90/bbl | ▲ +0.21% |
| EN590 Diesel | $846/MT | ▲ +0.18% |
| Jet Fuel A-1 | $1090/MT | ▲ +0.55% |
| Mazut M100 | $450/MT | ▼ -0.15% |
| Bitumen 60/70 | $470/MT | ▲ +0.08% |
| Sulphur Gran 99.5% | $470/MT | ▼ -0.44% |
| Urea 46% Gran | $650/MT | ▲ +1.12% |
| NPK 16-16-16 | $460/MT | ▼ -0.28% |
| Nat Gas TTF | $15.42/MMBtu | ▲ +0.92% |
Price alerts · Industry news
Comments
Post a Comment