Oil market at 'tank bottoms' in Asia — and Europe isn't far behind — warns Carlyle's Currie

Cracking towers stand beside access roads at the Ruwais refinery and petrochemical complex, operated by Abu Dhabi National Oil Co. (ADNOC), in Al Ruwais, United Arab Emirates. Bloomberg | Bloomberg | Oil markets are nearing minimum operating levels in Asia, with Europe likely next and the U.S. potentially facing shortages by July, Jeff Currie, Carlyle's chief strategy officer of energy pathways, said Monday, underscoring the global energy shock due to the Iran war. Headline global inventory figures can be misleading, Currie warned, as much of the oil stored worldwide cannot be used immediately. A large portion of that oil is needed to keep pipelines and storage systems running safely, leaving only a smaller share available for the market. Asia is already close to these so-called "minimum operating levels," Currie told CNBC on the sidelines of the UBS Wealth Conference in Singapore. Global oil markets have been under strain since the outbreak of the Iran war earlier this year, after disruptions to shipping through the Strait of Hormuz sharply curtailed energy exports from the Middle East. The next one would be Europe. We expect Europe to start to have problems sometime ... after this bank holiday. Jeff Currie Carlyle, chief strategy officer of energy pathways "We've seen explosive prices on products. Jet fuel has come down, but diesel has now gone up above jet fuel. So, the problem here in Singapore continues. It just moved from jet to diesel," Currie said. …