Global oil reserves rapidly decline over the ongoing Middle East conflict and restrictions on shipping in the Strait of Hormuz, Bloomberg news agency reported.
According to the agency, “Morgan Stanley estimates global oil stockpiles dropped by about 4.8 million barrels a day between March 1 and April 25 – far exceeding the previous peak for a quarterly drawdown in data compiled by the International Energy Agency.”
Goldman Sachs Group Inc. pointed out, according to Bloomberg, that “global visible oil stocks are already close to their lowest since 2018.”
The report notes that rapidly dwindling reserves demonstrate a growing risk of even sharper price spikes and shortages, the consequences of which global governments will not be able to effectively mitigate.
The sharp depletion of global reserves could also lead to an extremely unstable market situation even after the conflict in the Middle East ends.
MNA
