Rapid Draining

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In this report: The market is mislabelling a supply shock as demand destruction; the tell is the US redlining at 93% while the world tightens; genuine destruction is narrow (jet, petrochem); inventories are draining at a record pace toward a record OECD low by end-May. The pain trade has been longs, now its the shorts. "9 mb of the 11 mb of US SPR crude exported so far were shipped to Europe." Source: IEA citing Kpler shiptrackingArticlesSpokesman: Iran, US Edge Closer to Finalizing MoU No full Hormuz flows until first half of 2027, UAE’s oil giant saysWhat Does Demand Destruction Mean for Downstream Oil and Gas?Emerging consensus suggests oil to remain capped near $100 over next yearNATO is starting to consider Hormuz mission to protect shipsChina and Climate: China Restricts Fuel Exports, Solar Exports SurgeThe Oil Report weekly EIA data book. The US downstream system running in max-output modeNew Iran peace proposal triggers tense Trump-Netanyahu callHormuz traffic edges higher after lullShareViewJust quickly, here is the note I put out regarding this new ‘peace deal done’ headline last night. It is more of the same - Trump front-running negotiations. There is no new ground on nuclear or sanctions negotiations. They are closer, but no cigar yet. Lets move on. There are two fears in this market right now, and both are real enough to move price. The first is behavioural: that high prices have started to destroy demand. The second is physical: at the current rate of draw, the world’s oil stocks are racing toward “tank bottoms” by the third quarter. We are in the new medium-…