Goldman Sachs: Ongoing War Impact, Global Oil Inventories Depleting at Record Speed

BlockBeats News, May 21 — Goldman Sachs stated that as the Middle East war continues and supply remains constrained, global crude oil and refined product inventories are being depleted at a record pace this month. Goldman Sachs analysts noted in a report on May 20 that since the beginning of May, visible inventories have been decreasing at a record rate of 8.7 million barrels per day, nearly double the average rate since the conflict began. They stated, "The physical market continues to tighten, and it is estimated that oil exports through the Strait of Hormuz remain at only 5% of normal levels." Goldman Sachs analysts indicated that two-thirds of May's inventory decline is driven by the reduction of so-called "floating oil," with export declines outpacing import declines. They further noted that sluggish imports are now "spreading from Asia to Europe," highlighting that Europe's aviation fuel imports are 60% below the average levels projected for 2025.