Global Fuel Reserves Depleted, Strategic Oil Stores No Longer Viable, Reports Suggest
According to the International Desk of Webangah News Agency, The American newspaper The Wall Street Journal has warned of dwindling commercial fuel reserves globally, stating that the remaining strategic crude oil stockpiles can no longer be utilized.
Analysts indicate that recent attacks on Saudi Arabia’s East-to-West oil pipeline have resulted in the blockage of this vital artery, cutting off the supply of at least 2.5 million barrels of oil per day to the global market.
Earlier, Mike Wirth, CEO of Chevron, stated at an energy conference in Austin, Texas, that while these mechanisms helped reduce price and supply risks, the situation has now reached a point where there are no longer precautionary reserves available in the system, unlike at the beginning of the current crisis.
He added that in the current circumstances, a rapid decrease in prices appears highly improbable.
The newspaper quoted energy experts who noted that in the absence of a resolution to the conflict with Iran, the situation is escalating towards a potentially uncontrollable stage.
Meanwhile, the price of diesel fuel has reached an unprecedented record of $6.23 per gallon. Gasoline prices, which had fallen below $4 per gallon this past summer, have risen again to $4.32.
Dan Pickering, founder of Pickering Energy Partners, commented that global diesel supply is facing a deficit, as refineries have halted operations due to disruptions stemming from conflicts in Russia and the Middle East.
