Oil markets swing on Trump peace deal signals as global crude stocks near eight-year low
Brent crude oscillated around $100 a barrel this week, up roughly 50% since mid-February, as markets reacted to conflicting signals from U.S. President Donald Trump on a Middle East peace deal and renewed hostilities. Goldman Sachs warned that government and corporate oil reserves are approaching their lowest level in eight years, with the Strait of Hormuz still blocked. U.S. gasoline stocks are expected to hit an all-time low this summer, a critical period for fuel demand.
Brent crude traded around $100 a barrel this week, up roughly 50% since mid-February, as markets swung on conflicting signals from U.S. President Donald Trump regarding a Middle East peace deal and renewed hostilities between belligerents. Trump announced an imminent peace deal during the week, but fresh strikes between the warring parties followed, keeping prices volatile.
Global oil stocks are depleting at a concerning rate, according to a Goldman Sachs analysis, which warned that government and corporate reserves are approaching their lowest level in eight years. "The speed at which they are being depleted and the supply losses in certain regions and for certain products are concerning," the bank said, noting that traffic through the Strait of Hormuz remains paralyzed.
Initial supply losses from the conflict were offset by ships that had been loaded before the Strait of Hormuz closure, but that buffer has now been exhausted. In the United States, the world's largest oil producer, gasoline stocks are expected to hit an all-time low this summer, a critical period for fuel demand.