Goldman Sachs: US diesel inventory may drop to 20 day supply level in August

According to Dan Struvin, co head of global commodity research at Goldman Sachs, if the Strait of Hormuz is almost completely closed and commercial crude oil inventories continue to decline, US diesel inventories may drop to a critical level in August that can only sustain 20 days of supply. He stated that US oil inventories have experienced the largest decline in history in the past 8 weeks, and diesel inventories have dropped to their lowest level since 2003. The Iran War resulted in almost zero oil transportation through the Strait of Hormuz in the Persian Gulf, forcing the production of approximately 2 million barrels of oil to be shut down. According to data from the US Energy Information Administration, as of the week ending May 22, the diesel supply in the United States was approximately 28 days of reserves, compared to 36 days at the end of January.