The Middle East conflict and the situation with the Strait of Hormuz are rapidly depleting global oil reserves, according to a Bloomberg report.
Citing data from Morgan Stanley, the publication said global oil reserves fell by approximately 4.8 million barrels per day from March 1 to April 25. Goldman Sachs added that reserves are now close to their 2018 low.
The rapid depletion increases the risk of sharper price hikes and energy shortages, leaving governments worldwide unable to effectively mitigate the consequences. Even after the US-Iran conflict is resolved, a sharp reduction in reserves could lead to an extremely unstable market situation, the report noted.
