Investment banking firm Goldman Sachs issued a warning Monday that worldwide petroleum reserves are nearing their lowest point in nearly eight years, with the rapid pace of inventory decline raising red flags as Middle East conflicts continue disrupting key shipping lanes.
Crude oil values surged approximately 6% Monday following Iranian attacks on multiple vessels in the Strait of Hormuz that also ignited a United Arab Emirates petroleum facility. The escalation marked the most serious incident since a truce was established four weeks prior, as President Donald Trump’s efforts to deploy U.S. naval forces to clear shipping lanes triggered heightened tensions.
According to Goldman Sachs analysts, current worldwide petroleum inventories equal roughly 101 days worth of global consumption and may drop to 98 days by month’s end.
The financial institution noted that while total international reserves are “unlikely to hit minimum operational levels this summer, the speed of depletion and supply losses in some regions and products is concerning.”
Goldman’s assessment indicates that international commercial refined petroleum product stockpiles have decreased from 50 days of demand prior to the U.S.-Israeli conflict with Iran to the current level of 45 days. The bank emphasized that readily available refined product reserves are rapidly approaching critically low thresholds.
