PRECIOUS METALS | Canada's EDC Says Falling Oil Inventories Leave Energy Markets More Vulnerable

Canada's Export Development Corporation said declining global oil inventories have made energy markets more vulnerable. According to Jin10, the EDC expects international oil prices to average about $96 a barrel this year and $84 a barrel in 2027. The forecast reflects continued market uncertainty and the need to rebuild depleted inventories to prepare for potential future shocks. EDC Chief Economist Stuart Bergman said storage facilities around the world have become the oil market's "marginal producer." Bergman said inventories built up before the crisis, along with strategic reserve releases, helped offset the impact of lower supply, but global stocks have fallen below seasonal norms. He said a permanent agreement ending the war and restoring shipping through the Strait of Hormuz to pre-crisis levels would help ease supply tightness. Bergman added that the oil market remains undersupplied and is highly exposed to further disruption and sharp price swings if geopolitical risks escalate.