American Agency: The World Is Approaching a Prolonged Oil Crisis Amid Depleting Inventories and Disruptions in Hormuz
Bloomberg: One Billion Barrels Lost From Supplies as Warnings Mount Over Markets Reaching a “Critical Operational Threshold” Within Months
NYN | Reports and Analyses
The American news agency Bloomberg revealed on Saturday growing global fears of a prolonged oil crisis that could last for years, amid the rapid depletion of global inventories and disruptions affecting supply flows from the Gulf region, particularly through the Strait of Hormuz.
The agency explained that estimates issued by Morgan Stanley indicate that global markets have lost approximately one billion barrels of supply within a remarkably short period, with daily inventory withdrawals reaching 4.8 million barrels between March 1 and April 25.
It stressed that this sharp decline not only threatens higher global oil prices, but also places governments and major industries before complex challenges in securing their essential needs, especially as inventories in OECD countries approach levels described as “operationally critical.”
Warnings of Reaching the “Operational Floor”
According to the report, international financial institutions, including JPMorgan Chase, warned that oil markets are approaching what is known as the “minimum operating level,” a stage at which storage facilities, pipelines, and ports can no longer function efficiently from a technical standpoint, even if supplies have not been completely exhausted.
The estimates predicted that the world could reach this level by next September if disruptions to shipping and navigation through the Strait of Hormuz continue and normal oil supply flows are not restored.
Asia and Europe in the Danger Zone
The report noted that Asian countries heavily dependent on energy imports, such as Pakistan, Indonesia, and the Philippines, could face severe fuel shortages within weeks if the crisis persists.
In Europe, aviation fuel inventories at major storage hubs such as Amsterdam and Rotterdam have fallen to their lowest levels in six years, threatening widespread disruptions to air travel during the summer travel season.
U.S. Stockpiles Fall to Their Lowest Levels in Decades
The agency pointed out that the United States, one of the world’s leading energy suppliers, has not been immune to the repercussions of the crisis. Its Strategic Petroleum Reserve has dropped to its lowest level since 1982, while diesel inventories have reached historically low levels not seen since 2005.
A Crisis That Will Continue Even After the Conflict Ends
Bloomberg emphasized that the repercussions of the crisis will not end simply with the resumption of navigation through the strait, noting that markets will enter an intense global race to refill strategic and commercial storage reserves, which will keep pressure on prices for a prolonged period.
The agency concluded its report by stating that the global “shock absorber” in the oil market has suffered a major collapse, and that the world may need years to compensate for what the war depleted in just a few weeks.
