Goldman Sachs Warns Global Oil Inventories Near 8-Year Low

Key Facts

Goldman Sachs reports that global oil inventories are plunging at a record pace, nearing eight-year lows with current stocks at 101 days of expected demand. This rapid erosion of reserves comes ahead of the critical summer travel season, even as the market grapples with a reported collapse in demand. Analysts forecast a further drop to 98 days by the end of May, primarily due to potential shipping disruptions in the Strait of Hormuz. Despite a temporary pullback in prices, technical setups for Brent and WTI crude indicate a potential bullish breakout driven by physical supply shortages. The accelerated depletion of global reserves provides strong fundamental support for higher prices in the near term. Overall, the convergence of record inventory declines and geopolitical risks suggests continued upward pressure on crude oil markets.

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