economy
Global oil stockpiles could hit record lows if Strait of Hormuz remains closed
The world's oil stockpiles could approach all-time lows by the end of May due to the Strait of Hormuz closure, according to UBS.
TL;DR
- Global oil inventories are decreasing at a record pace due to Middle East supply disruptions.
- The International Energy Agency warns of potential price spikes as inventories approach critical levels.
- If the Strait of Hormuz remains closed, inventories could reach record lows by September.
- A prolonged closure could lead to critical product inventory levels by July or August, potentially causing the global economy to seize up.
- Analysts believe prices will spike to curtail demand before critically low inventory levels are reached, causing economic contraction.