Global oil inventories face operational stress by early June
Updated
Updated · MarketWatch · Apr 30
Global oil inventories face operational stress by early June
9 articles · Updated · MarketWatch · Apr 30
J.P. Morgan says only 800 million of 8.4 billion barrels in storage are realistically available after the Strait of Hormuz closure cut an estimated 13 million barrels a day.
The bank said OECD commercial stocks could near stress levels in early June and hit operational floors by September if the waterway stays shut, even with demand destruction reaching 5.5 million barrels a day.
The IEA estimates roughly 800 million barrels of export losses through April from reduced production and Gulf infrastructure damage, while Brent crude traded above $114 a barrel.
With oil inventories nearing crisis levels and the Strait of Hormuz still closed, how close are we to a global energy system breakdown—and what comes next?
Could the current oil and fertilizer shortages trigger a food crisis in vulnerable regions, and how might governments respond to prevent widespread shortages?