Oil supply shock to worsen as inventories fall further even if conflict ends
Executives and analysts say depleted stockpiles and slow shipping recovery could keep crude and fuel prices elevated for up to six months.
- Despite progress on an initial peace deal between the United States and Iran, global oil supplies will remain tight for months as shipping and production disruptions persist, industry experts warn.
- Exxon Mobil CEO Darren Woods stated it will take one to two months for oil flows to normalize after the Strait of Hormuz reopens, as shipping backlogs clear.
- Global hydrocarbon stockpiles have fallen by at least 500 million barrels, with Goldman Sachs warning refined product buffers are approaching very low levels as inventories drop to around 98 days of demand.
- Europe could face jet fuel shortages as early as June if Middle East supplies are not fully replaced, the International Energy Agency warns, with Ireland holding just 10 days of stock cover.
- The global energy system enters peak demand during the Northern Hemisphere summer in a weakened position, struggling to handle increased consumption from aviation, farming, and freight.
7 Articles
7 Articles
Oil Shock Far From Over: Energy Giants Warn Global Fuel Supplies May Stay Tight for Months After Iran Deal
Oil supplies are set to tighten further in coming weeks even if the U.S. and Iran agree on a peace deal to end their war because it will take weeks for oil shipments to resume from the Middle East Gulf and reach refiners worldwide - so oil companies will continue to deplete storage tanks to meet peak summer demand.
Oil towards stock depletion (UnlimPhotos)European and American oil tanks are moving towards exhaustion. In May for Europe. In July for the United States. Oil towards stock depletion (UnlimPhotos) By Célia Ferrent L'alert de Jeff Currie Jeff Currie is an economist and director of the Energy Pathways strategy at the Carlyle Group. He is the former world leader in raw materials research in the investment research division at Goldman Sachs, where he…
Oil Storage Tanks in US to Run Dry by July 4, Warns Carlyle’s Jeff Currie
Oil storage tanks in the United States are on track to run empty around July 4, according to Jeff Currie, senior advisor at Carlyle Group, signaling a deepening energy crisis that could disrupt markets and fuel supplies. Currie, speaking on Bloomberg Television, also warned that Europe will hit tank bottoms as early as May, painting […]
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