Backwardation and Price Volatility Keep Product Stocks Low
Comparing end-March excess returns to storage with end-March stocks at bulk terminals shows that stocks fall below 20 million barrels when returns are negative. See Notes at the Margin.
Blame Price Volatility for Low Stocks and High Prices (November 9, 2026) -- World crude stocks are much lower thanks to the drawdown caused by the Iran war. However, market participants may ignore calls to replenish stocks for this simple reason: margin calls. More >>