Goldman Sachs warns global oil stocks near eight-year low amid Strait of Hormuz disruption
Goldman Sachs warned Monday that global oil stocks are nearing their lowest level in eight years, estimating they stand at 101 days of global demand and could fall to 98 days by the end of May. The warning came as oil prices spiked after reports of Iran hitting ships in the Strait of Hormuz and setting a UAE oil port ablaze. Chevron CEO Mike Wirth said physical shortages would begin appearing worldwide due to the strait's closure, with economies first shrinking in Asia.
Goldman Sachs warned on May 5, 2026, that global oil stocks are nearing their lowest level in eight years, estimating total stocks at 101 days of global demand and projecting they could fall to 98 days by the end of May. The warning came as oil prices spiked Monday after reports of Iran hitting several ships in the Strait of Hormuz and setting a UAE oil port ablaze, marking the biggest escalation since a cease-fire was declared four weeks ago.
Early on Tuesday, Brent crude futures fell 1.3% to $112.93 a barrel, while U.S. crude slid 2.3% to $104 per barrel, after both jumped in the previous session on heightened supply disruption fears. Goldman said global commercial refined products stocks have drawn down from 50 days of demand before the U.S.-Israeli war on Iran to 45 days of demand now, adding that easily accessible refined products buffers were fast approaching very low levels.
Chevron CEO Mike Wirth, speaking on a panel Monday, warned that physical shortages in oil supply would begin appearing around the world because of the closure of the Strait of Hormuz. "Economies will begin shrinking, first in Asia, as demand adjusts to meet supply while the strait remains closed because of the U.S.-Israeli war with Iran," Wirth said.