The Hormuz Supply Shock

With the Strait of Hormuz effectively closed to Iranian exports, the IEA has declared the current conflict as the largest energy supply shock in its history. Global oil inventories are now drawing at a rate of 1.2 million bpd.

US Domestic Pull

Strong US refinery utilization is absorbing domestic Permian production at record rates. Even with planned SPR releases, the physical shortage of medium-sour barrels is driving WTI toward levels not seen in real terms for over two years.