Global oil stocks are approaching their lowest level in eight years, Goldman Sachs said on Monday, warning that the speed of depletion was becoming a concern as supplies through the Strait of Hormuz remained restricted.

Oil prices jumped about 6% on Monday after Iran hit several ships in the Strait of Hormuz and set a UAE oil port ablaze, as President Donald Trump's attempt to use the US Navy to free up shipping provoked the biggest escalation since a ceasefire was declared four weeks ago. O/R

The bank estimated total global oil stocks stood at 101 days of global demand and could fall to 98 days by the end of May.

Goldman added that while total global stocks are "unlikely to hit minimum operational levels this summer, the speed of depletion and supply losses in some regions and products is concerning."

The bank estimated that global commercial refined products stocks have drawn down from 50 days of demand before the US-Israeli war on Iran to 45 days of demand now. The bank added that easily accessible refined products buffers were fast approaching very low levels.