Loading ...Oil Prices Hold Gains As Gasoline Stocks Hit 12 Year Lows, Cushing ‘Tank Bottoms’ Loom
The Strategic Petroleum Reserve saw another huge drawdown this week…
Finally, economists at Macquarie wrote in a note this morning that crude oil’s muted reaction to the closure of Hormuz has mainly been a function of the oversupply seen before the war……..The analysts suggested that “the market will be ok for another month or two, especially given commercial crude stocks have been cushioned by SPR/product draws.”
“If the Strait reopens soon, we expect prices to fall sharply. However, with stocks drawing rapidly, if the Strait remains closed, at some point prices will need to move much higher.”
‘Tank Bottoms’ are in sight around the world.