Goldman warns global oil buffers are nearing eight-year lows

Goldman Sachs said global oil inventories were moving close to their lowest level in eight years, warning that the pace of the drawdown had become a concern as supplies through the Strait of Hormuz remained restricted, Reuters reported.

The bank estimated that total global oil stocks stood at 101 days of global demand and could fall to 98 days by the end of May. It said inventories were not expected to reach minimum operating levels this summer, but the speed of depletion and supply losses in some regions and products were worrying.

Oil prices rose about 6% on Monday after Iran hit several ships in the Strait of Hormuz and a UAE oil port was set on fire, Reuters reported. The report said an attempt by President Donald Trump to use the US Navy to reopen shipping routes had led to the sharpest escalation since a ceasefire was declared four weeks earlier.

Goldman also estimated that global commercial refined-product stocks had fallen from 50 days of demand before the US-Israeli war on Iran to 45 days now. The bank said easily accessible refined-product buffers were approaching very low levels.