Are global oil stocks big enough to weather another six months of US-Iran war?
As the US-Iran war drags on with no end in sight, oil traders and policymakers are grappling with a critical question: are global oil stocks enough to offset what could become the biggest supply disru...
The ongoing US-Iran conflict has raised concerns about whether global oil reserves are sufficient to sustain the market during a potential six-month supply disruption. According to calculations, the world has lost approximately 2.6 billion barrels of oil since the war's inception, equivalent to roughly 25 days of global oil consumption.
However, China's reduced demand has led to a more manageable supply gap of 5 million barrels per day. The International Energy Agency (IEA) has announced a release of 400 million barrels from emergency reserves, with sufficient stocks to cover the gap for 300 days. However, only 0.9 billion barrels of government-held stocks are accessible, providing coverage for 180 days.
The US Strategic Petroleum Reserve, which stores one-third of these stocks, has reached its lowest levels since 1983, leaving only 200 million barrels accessible. Meanwhile, diesel and jet fuel stocks are at their five-year low, indicating potential shortages in those sectors. Despite the concerns, China's extensive reserve of nearly 1.7 billion barrels could keep the country supplied for almost a year, making it one of the most resilient economies in the crisis.
Written by urgent.news from Gulf Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
