Oil Product Price Pain and the Strait of Hormuz Closure

The continued closure of the Strait of Hormuz is driving a massive 10 mb/d global inventory drawdown, primarily impacting refined oil products. Despite verbal interventions to cool prices, Brent crude remains elevated near $110/b with further upside risk in fuel premiums.

Key Takeaways

• 1.The Strait of Hormuz remains closed, causing global oil inventories to draw down by an estimated 9-10 mb/d.
• 2.While crude markets are currently cushioned by SPR releases and lower refinery throughput, the real pain will be felt in refined products like jet fuel, diesel, and gasoline.
• 3.Diplomatic efforts and verbal interventions by President Trump to cool the market have had diminishing effects as negotiations with Iran remain stagnant.

Table of Contents

• Crude oil comment

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