Global oil inventories are approaching their lowest level in eight years, according to Goldman Sachs, as supply disruptions in the Strait of Hormuz accelerate stock drawdowns.
The bank said global oil stocks currently stand at around 101 days of demand and could fall further to 98 days by the end of May, highlighting the pace at which inventories are being depleted.
Oil prices surged by around 6% following escalating tensions in the region, including attacks on vessels in the Strait of Hormuz and a fire at a UAE oil port, intensifying concerns over supply security.
Goldman Sachs warned that while inventories are not yet at minimum operational levels, the speed of depletion is becoming a growing concern, particularly in certain regions and refined product segments.
Global commercial refined product stocks have declined from approximately 50 days of demand before the conflict to around 45 days currently, indicating tightening buffers across key markets.
The bank added that easily accessible refined product reserves are approaching critically low levels, increasing the risk of further volatility if disruptions persist.
The Strait of Hormuz remains a vital chokepoint for global energy flows, and ongoing restrictions continue to place pressure on supply chains and inventory levels.