Record-breaking speed of inventory disappearance, bulls still have stories to tell

Goldman Sachs states that due to the ongoing Middle East conflict, global crude oil and refined product inventories are being depleted at a record pace this month, with a daily decline of about 8.7 million barrels since May, twice the pre-conflict level. The physical market continues to tighten, with Hormuz Strait exports at only 5% of normal levels. Two-thirds of the inventory decline in May was driven by reduced offshore oil exports, with exports decreasing more than imports. The sluggish imports are spreading from Asia to Europe, with European jet fuel imports 60% below the 2025 average.