$OIL - Oil prices expected to spike significantly as US refined product inventories approach critical lows in July, with distillate inventories at 23-year lows and Cushing crude inventories nearing operational minimums. The closure of the Strait of Hormuz has removed 13 million barrels/day of production, with refined product exports dropping from 20 million to 16 million barrels/day, creating an unsustainable supply situation.
$WTI - WTI expected to outperform Brent as Cushing inventories approach operational lows (20 million barrels), forcing US crude prices higher relative to global benchmarks to slow exports and keep barrels at home.