World oil supplies fall at historic speed amid Iran conflict — Bloomberg
A global oil crunch is here, but not all countries are feeling it equally (photo: Getty Images)
Global oil reserves are depleting at an unprecedented pace as the war in Iran sharply reduces supplies from the Gulf, Bloomberg reports.
According to the agency, the rapid drawdown in stockpiles means the risk of even sharper oil price spikes and supply shortages is growing increasingly likely, leaving governments and industries with fewer options to offset the loss of more than 1 billion barrels of supply over two months following the near-total closure of the Strait of Hormuz.
The steep depletion of reserves also means the market will remain vulnerable to future disruptions even after the conflict ends.
Morgan Stanley estimates that global oil inventories declined by approximately 4.8 million barrels per day between March 1 and April 25. This significantly exceeds the previous quarterly record decline tracked by the International Energy Agency. Crude oil accounted for nearly 60% of the reduction, with the remainder coming from refined petroleum products.
Data from Goldman Sachs Group indicate there are signs that the pace of inventory declines has slowed somewhat in recent days due to weaker demand from China, the world's largest oil importer. Despite this, global visible oil inventories are already nearing their lowest levels since 2018.
The most critical situation is developing in several Asian countries heavily dependent on fuel imports. Traders point to Indonesia, Vietnam, Pakistan, and the Philippines as nations that could face critically low supply levels within a month.
At the same time, the region's largest economies, particularly China, remain relatively calm for now.
However, European jet fuel reserves are also declining rapidly ahead of the summer travel season. Some analysts predict they could reach critical levels as early as June.
Bloomberg reports that the United States has already reduced domestic crude oil and fuel stockpiles to levels below historical averages. In addition, Washington has been drawing from the country's Strategic Petroleum Reserve for four consecutive weeks. Diesel inventories at the end of last week fell to their lowest level since 2005.
What else we know
On May 8, global oil prices rose again after fighting between the United States and Iran resumed. Brent crude futures climbed above $100 per barrel.
Reports also emerged that Iraq recently announced the discovery of a giant oil field amid the ongoing energy crisis. The field, located near the UAE border, covers more than 8,700 square kilometers.
