Putting all of the above in simple terms: by playing a jawboning game of cat and mouse with oil markets, the Trump administration is only draining stocks, both commercial and strategic, faster as consumers can afford to buy more, and they do. However, the supply sid of the pipeline remains blocked.
And until the war in Iran truly ends, and the Strait returns to normal transit, global inventories will continue to drain by about 10-14 million per day. Which is why when the operational floor is reached in less than three months, the resulting parabolic move in oil will be just as memorable as when it plunged deep into negative territory in April 2020 when traders were paying others any amount asked, to take physical oil off their hands. It will be just like that… only in reverse.
