{"id":7613,"date":"2026-05-31T23:38:16","date_gmt":"2026-05-31T23:38:16","guid":{"rendered":"https:\/\/stock999.top\/?p=7613"},"modified":"2026-05-31T23:38:16","modified_gmt":"2026-05-31T23:38:16","slug":"wall-street-may-have-solved-a-nagging-mystery-in-global-oil-markets-as-doomsday-has-yet-to-arrive","status":"publish","type":"post","link":"https:\/\/stock999.top\/?p=7613","title":{"rendered":"Wall Street may have solved a nagging mystery in global oil markets as doomsday has yet to arrive"},"content":{"rendered":"

<\/p>\n

China has quietly emerged as the global oil market\u2019s stealthy swing consumer, potentially holding off doomsday a while longer.<\/p>\n

For months, investors wondered why crude oil prices failed to reach worst-case scenarios, even as a fifth of the world\u2019s supply remained bottled up in Persian Gulf.<\/p>\n

To be sure, Saudi Arabia diverted exports to bypass the Strait of Hormuz, economies in Asia imposed rationing, and the world\u2019s biggest oil-consuming countries coordinated releases from strategic reserves. <\/p>\n

But the efforts haven\u2019t fully offset the missing Mideast oil, with the shortfall estimated at more than 10 million barrels a day. At the same time, the U.S. naval blockade on Iran removed took more barrels off the market.<\/p>\n

As a result, the ongoing stalemate between the U.S. and Iran on reaching a lasting ceasefire deal that reopens the strait has stoked increasing panic from a growing chorus of voices.<\/p>\n

\u201cWe\u2019re approaching unheard of inventory levels,\u201d\u00a0Exxon Senior Vice President Neil Chapman warned at an industry conference on Thursday.\u00a0\u201cI mean really, really low levels. You can debate whether that\u2019s going to hit those really low levels in two weeks or three weeks. Once you get to that point, then you\u2019ll see price shoot up.\u201d<\/p>\n

Analysts have predicted the moment of truth\u2014when global inventories reach critically low levels\u2014could arrive as soon as June. But markets have less visibility into China\u2019s vast stockpiles, which are estimated at around 1.4 billion barrels.<\/p>\n

Meanwhile, China\u2019s crude imports plunged 20% in April\u00a0to 9.4 million barrels per day, representing the biggest drop since the pandemic, and data for May suggest a steeper dive to 7 million.<\/p>\n

Due to Beijing\u2019s cap on fuel exports, Chinese refineries are consuming less oil. In addition, China appears to have eased off its earlier oil hoarding while also releasing some of its enormous reserves. <\/p>\n

\u201cTaking a step back, weakness in China\u2019s crude imports could delay the crunch point for the global oil market,\u201d Hamad Hussain, climate and commodities economist at Capital Economics, said in a note on Friday.<\/p>\n

He previously estimated that Brent crude prices would hit record highs by the end of June, assuming market conditions and drawdown trends persisted. <\/p>\n

But the latest evidence suggests Chinese\u00a0refiners more aggressively drained inventories in May compared to April, absorbing a greater share of the global oil shock, Hussain added.<\/p>\n

\u201cBack of the envelope calculations suggest that if China\u2019s demand for crude in May were to be repeated in June, the \u2018tipping point\u2019 in the global oil market could be pushed back from June and into July,\u201d he wrote.<\/p>\n

Such relief couldn\u2019t come any sooner.<\/p>\n

JPMorgan has warned that commercial oil inventories in the developed world could \u201capproach operational stress levels\u201d by early June.<\/p>\n

Chevron CEO Mike Wirth said Thursday that oil prices will likely soon jump as the market\u2019s \u201cshock absorbers\u201d are depleted, weakening its ability to continue absorbing the disruption.\u00a0<\/p>\n

\u201cOver the next few weeks, we\u2019re likely to see those pressures flow through more directly to physical prices and there\u2019s more upward pressure that I would expect as we get into June and certainly into July,\u201d he added.<\/p>\n

Analysts at UBS said earlier this month that oil inventories are approaching record lows, warning that \u201cbuffers have now largely been exhausted.\u201d<\/p>\n

As stockpiles go even lower, UBS said oil prices could become more volatile and highlighted the \u201crisk of panic buying if physical dislocation intensifies and the Strait of Hormuz remains closed.\u201d<\/p>\n

But for Robin Brooks, senior fellow at the Brookings Institution, the lack of a disastrous spike in oil prices hasn\u2019t been a mystery as he has consistently dismissed such dire predictions.<\/p>\n

Instead, he argued oil markets have more wiggle room than thought, pointing out that South Korea pivoted away from Saudi Arabia and began importing more oil from Canada, Malaysia and elsewhere. <\/p>\n

South Korea\u2019s total oil imports still fell, and it paid a hefty price top obtain alternate supplies. But the lesson is that markets are more resilient and resourceful than they get credit for, Brooks explained in a Substack post on Tuesday.<\/p>\n

\u201cThe bottom line is that this supply shock really wasn\u2019t all that traumatic,\u201d he concluded. \u201cThat\u2019s also why oil prices didn\u2019t have to rise to apocalyptic levels. There just wasn\u2019t all that much demand that needed to be\u00a0\u2018destroyed.’\u201d<\/p>\n

#Wall #Street #solved #nagging #mystery #global #oil #markets #doomsday #arrive<\/p>\n","protected":false},"excerpt":{"rendered":"

China has quietly emerged as the global oil market\u2019s stealthy swing consumer, potentially holding off…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[245],"tags":[5989,173,517,6201,423,166,1076,13531,303,10497,2807,2806],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/7613"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7613"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/7613\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}