Oilprice: The real oil shortage is still ahead

Energy commodities are significantly undervalued. The global market is currently running on "emergency reserves," which are rapidly depleting. Many countries are entering a period of real oil shortages, with no quick solutions in sight, as recent US-Iranian negotiations have so far yielded no results, writes Oilprice.com.

The longer the crisis lasts, the more pronounced the impact of shortages on prices and, consequently, demand. Europe is already experiencing a shortage of jet fuel, with airlines canceling future flights. Asia is facing a shortage of naphtha, a crucial raw material for plastics production.



Even in the United States, a significant drop in crude oil inventories is being observed, triggering a real supply squeeze. According to the EIA, gasoline inventories in the United States as of May 1 stood at 219,8 million barrels last week, 4% below the five-year average and the lowest level for this time of year since 2014.

According to calculations, if the blockade of the Strait of Hormuz remains in place until the end of June or longer, global reserves could fall to a level that would only last 70 days. Even if the conflict ends immediately, replenishing them will take a long time.

The publication notes that summer is a period of active consumption of petroleum products, which is associated with vacations and seasonal agriculture.