Oil inventories headed toward multi-decade lows, US EIA warns

The Korea Times

Oil inventories headed toward multi-decade lows, US EIA warns

NEW YORK — Oil stockpiles in the world's largest economies are headed toward the lowest levels since at least 2003 as inventories are drawn down at a record pace due to the lost output from the Iran war, the U.S. Energy Information Administration said on Tuesday. Total oil inventories in the members of the Organization for Economic Cooperation and Development will fall to just under 2.3 billion barrels by December, the EIA said, based on its current assumption that marine traffic through the Strait of Hormuz is unlikely to return to pre-conflict levels until early 2027. The OECD stockpile has not been this low since the EIA began keeping records in 2003, the agency said in its monthly Short-Term Energy Outlook report. The rapid inventory drawdown, which is needed to make up for 11 million barrels a day of lost Middle Eastern output, creates the foundation for a sharp increase in oil prices in the months ahead, the agency said. Recent reports that the U.S. and Iran were near a deal to re-open the Strait of Hormuz, a critical waterway that handles 20 percent of global oil shipments, wei

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