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.

U.S. stocks ended lower on Friday.

The Dow Jones Industrial Average fell by 107.58 points, or 0.2 percent, to 53,732.41. The Standard and Poor's 500 sank 13.23 points, or 0.17 percent, to 7,785.76. The Nasdaq Composite Index shed 73.86 points, or 0.28 percent, to 26,729.16.

Six of the 11 primary Standard and Poor's 500 sectors ended in the green, with energy and utilities leading the gainers by going up 1.36 percent and 0.55 percent, respectively. Meanwhile, health and technology led the laggards by losing 0.6 percent and 0.42 percent, respectively.