# The 'great de-stocking'

> Goldman Sachs analysts argue that the sharp 2023 commodity sell-off reflects an unprecedented physical de-stocking rather than only financial liquidation. They cite large SPR drawdowns in France, China and the US totaling about 250 million barrels, falling Iranian floating storage, and weaker clean freight rates. Their end-use demand and inventory data still look firm, but prices have moved against their bullish forecasts.

- Date: 2023-05-23 · published 2023-05-23T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/5977-the-great-de-stocking
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Government stock releases and sharply higher funding costs are draining physical inventories, which weighs on crude and energy-linked prices despite steady demand. For feed buyers, lower energy prices can ease costs for ethanol, biofuel and freight-linked inputs, but the price direction remains uncertain.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-04-10 | [Markets starting to reveal new demand paradigms — this week in the grain markets - RealAgriculture](https://feedsoft.ai/events/53693-markets-starting-to-reveal-new-demand-paradigms-this-week-in-the-grain-markets.md) | -19.9% | +5.3% |
| WTI | 2017-05-01 | [Has The OPEC Deal Been A Success](https://feedsoft.ai/events/71652-has-the-opec-deal-been-a-success.md) | -6.3% | +0.7% |
| WTI | 2019-05-31 | [What will reverse the loonie’s recent declines](https://feedsoft.ai/events/59320-what-will-reverse-the-loonie-s-recent-declines.md) | -6.9% | +4.9% |
| WTI | 2017-04-24 | [Rival storylines duel in the global oil market \| The National](https://feedsoft.ai/events/71672-rival-storylines-duel-in-the-global-oil-market-the-national.md) | -0.6% | +1.4% |
| WTI | 2018-05-16 | [Corn Hands the Baton to Wheat](https://feedsoft.ai/events/10238-corn-hands-the-baton-to-wheat.md) | +1.1% | -6.6% |
| BRENT | 2020-04-10 | [Markets starting to reveal new demand paradigms — this week in the grain markets - RealAgriculture](https://feedsoft.ai/events/53693-markets-starting-to-reveal-new-demand-paradigms-this-week-in-the-grain-markets.md) | -6.7% | +8.6% |
| BRENT | 2017-05-01 | [Has The OPEC Deal Been A Success](https://feedsoft.ai/events/71652-has-the-opec-deal-been-a-success.md) | -4.6% | +1.8% |
| BRENT | 2020-03-17 | [COVID-19: Flattening the curve from ground zero](https://feedsoft.ai/events/54381-covid-19-flattening-the-curve-from-ground-zero.md) | -12.6% | -12.5% |

## Sources

- gspublishing.com: https://www.gspublishing.com/content/research/en/reports/2023/05/23/265d1081-6ac4-4cc8-80aa-cd06e0587acb.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.