Premium"Nothing Left To Drain": Goldman Finds Near-Record $22 Oil Risk Premium As Global Stocks Hit Rock Bottom
For seven months, since the Iran war began, the oil market was living off its savings. But this week, the biggest names in oil said those savings are gone.
"There aren't any more inventories to drain in the west," Vitol CEO Russell Hardy (who warned last month that fuel markets were "pretty tight") told the Energy Intelligence Forum in London on Tuesday, a line quickly picked up by Bloomberg, the FT and, on Friday, veteran energy analyst John Kemp, whose latest note carries the not-exactly-subtle title "Global oil inventories fall to critically low level." The head of the world's largest independent oil trader also put a number on what happens if the Hormuz shuttle stops working: "you do have that $200-a-barrel scenario."