Goldman Warns Energy Markets Face Demand Destruction Phase

There is a growing consensus among energy-market experts that global supply buffers are being quickly drained as the Hormuz maritime chokepoint remains mostly closed. Tanker transits through the strait remain deeply depressed, with reported vessel counts down more than 90% from normal levels. The risk is that even if a peace deal is reached in the near term, oil markets may still require demand destruction before tight conditions normalize.

Let's begin with our note from early Friday, citing Exxon and Chevron executives who warned that an oil-market inflection point is nearing as inventory levels are being drained to dangerously low levels amid the continued closure of the Hormuz chokepoint.