Global oil stocks approaching lowest level in eight years: Goldman Sachs

Goldman Sachs said in a report released on Monday that the global oil stocks are approaching their lowest level in eight years.

The investment bank predicts in its report that global oil inventories, including onshore and offshore crude oil reserves and refined product inventories, are currently sufficient to meet 101 days of global demand, approaching an eight-year low, and could fall ‌to ⁠98 days by the end of May.

As for refined oil products, global inventories were able to meet 50 days of demand before the outbreak of the war in the Middle East, but the stored supplies are now only sufficient for 45 days, the report said.

Analysts said that rapidly depleting inventories of petrochemical products such as naphtha and liquefied petroleum gas, as well as jet fuel, will lead to a growing risk of supply shortages in some economies.

Chevron CEO Mike Wirth recently said that the current situation in the Strait of Hormuz is the main concern regarding supply issues. He stressed that the key issue is not oil prices, but rather how to obtain fuel.

Oil prices went down on Wednesday amid rising market expectations that the United States and Iran are nearing the end of hostilities and that normal passage through the Strait of Hormuz will be restored.

Global oil stocks approaching lowest level in eight years: Goldman Sachs

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, will keep their oil output levels unchanged for the third consecutive month in December, OPEC said in a statement on Sunday.

Seven OPEC+ countries, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, announced the decision after a virtual meeting to review global market conditions and the outlook.

"The seven participating countries decided to maintain September 2026 required production for December 2026," the statement noted.

Under the agreement, the seven countries will maintain their combined required production level at approximately 31.01 million barrels per day (bpd) in December. Saudi Arabia's required production level will remain at 10.48 million bpd, followed by Russia at 9.95 million bpd and Iraq at 4.43 million bpd.

The OPEC+ members had been raising oil output on a monthly basis from April to September this year. They paused the increases in October and kept November's output unchanged.

OPEC said the seven countries will hold their next meeting on Nov. 29 to review market conditions.

OPEC+ to maintain oil output for 3rd consecutive month in December