IEA: Oil Stock Draws to Persist if Hormuz Stays Blocked
The International Energy Agency warns that if the Strait of Hormuz remains closed, global oil inventories will keep falling through the end of summer. While American supply has outperformed, it can only partly offset Middle East losses, and high prices are starting to dent fuel demand.
The IEA forecasts that without a resumption of oil flows through the Strait of Hormuz, global stockpiles will continue to shrink until at least the end of the northern summer.
Supply from the United States, Brazil, Argentina, and Venezuela has exceeded initial expectations. However, combined output from North and South America can only marginally compensate for the disruption caused by the ongoing Middle East conflict.
At the same time, elevated crude prices and a weakening macroeconomic outlook are dampening demand for transportation fuels, adding a bearish element to the market balance.
Source: MarketTwits