[Regnum] Global oil inventories fell by 200 million barrels in April, the largest decline since the coronavirus pandemic. This was reported on May 6 by the British publication The Financial Times (FT), citing data from analytical companies.
It is reported that due to the conflict in the Middle East and the closure of the Strait of Hormuz, the global oil market lost approximately 1 billion barrels of crude. As a result, consumption of this crude fell by approximately 5 million barrels per day.
According to analysts, global oil reserves are currently below the amount needed for 98 days of global consumption. Experts have called this figure close to critical. Meanwhile, Jim Burkhard, head of oil research at S&P, warned that the worst of this crisis is yet to come and that the oil market faces an inevitable reckoning.
As Goldman Sachs noted, global oil reserves are currently approaching their lowest level in eight years. They also cited as a warning sign the fact that aviation fuel reserves in Northern Europe fell in April to their lowest level since 2020, when the COVID-19 pandemic swept the world.
Iran blockaded the Strait of Hormuz in response to attacks by the United States and Israel that began on February 28. On April 11, American ships also began blockading the Strait of Hormuz to interdict Iranian shipping. On May 1, U.S. Central Command in the Middle East reported the interception of 45 vessels associated with the Islamic Republic since the blockade began.
Russian Deputy Prime Minister Alexander Novak stated that the blockade of the Strait of Hormuz is leading to a profound crisis in the global oil industry. Logistics problems have resulted in huge volumes of oil simply not reaching the market, and demand significantly exceeds supply, he noted.
Russian Presidential Press Secretary Dmitry Peskov also noted that Russia is contributing to stabilizing oil prices and minimizing the impact of the Middle East crisis on global energy. He added that Russia continues to supply oil. According to Peskov, demand is growing, while the amount of oil available on the market is not increasing, but rather decreasing.