Global oil inventories are declining at an alarming rate, the International Energy Agency warned Wednesday, as the Strait of Hormuz shutdown continues to strain the energy sector.
“Oil is in a race against time,” one analyst said. Even if the mounting pressure on oil stockpiles forces the reopening of the strait in June — as JPMorgan analysts recently predicted — the market will be “severely undersupplied” until October, the IEA warned.
Import-dependent countries are turning to the US, which has become the world’s “supplier of last resort,” with exports hitting a record high, a Bloomberg energy columnist wrote. But it can only play that part for so long; the US’ crude oil and gas inventories are consistently falling.
Chart showing US net exports of crude oil and petroleum product, barrels per day