Commodities
OECD Oil Inventories Plummet Toward Multi-Decade Lows
The US Energy Information Administration (EIA) has warned that oil inventories are headed toward multi-decade lows due to lost output from the Iran war.
Total oil inventories in OECD members will fall to just under 2.3 billion barrels by December, based on current assumptions about marine traffic through the Strait of Hormuz.
The rapid inventory drawdown is needed to make up for 11 million barrels a day of lost Middle Eastern output and creates a foundation for sharp oil price increases in the months ahead.
The EIA forecasts that global benchmark Brent crude oil prices will average around $105 a barrel in June and July, well above current futures market prices.