Due to supply disruptions from the Persian Gulf: global oil reserves are rapidly dwindling
10 May 04:15
Global oil inventories are rapidly declining due to supply disruptions from the Persian Gulf caused by restrictions on tanker traffic through the Strait of Hormuz amid the ongoing conflict, which is heightening the risks of fuel shortages and price volatility, Bloomberg reports, as cited by "Komersant Ukrainian".
According to the publication, global oil inventories fell by approximately 4.8 million barrels per day between March 1 and April 25, exceeding previous peak quarterly decline rates recorded by the International Energy Agency. About 60% of the decline is attributed to crude oil, with the remainder coming from petroleum products.
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Analysts warn that approaching the “operational minimum” of reserves poses risks to market stability. According to JPMorgan estimates, OECD countries could enter a state of “operational stress” in the near future and approach the critical level of system functioning by September.
“The greatest pressure is currently being felt in a number of import-dependent Asian countries: traders cite Indonesia, Vietnam, Pakistan, and the Philippines as among the most vulnerable, where critical supply levels could be reached as early as next month. At the same time, the region’s major economies, particularly China, remain in a relatively comfortable position for now,” the report states.
In the U.S., crude oil and petroleum product inventories remain below historical averages, with distillate inventories at their lowest level since 2005.
Governments have already drawn down about 400 million barrels from strategic reserves, but further reductions could further weaken the global oil system’s safety buffer.
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