David Hodari, Wall Street Journal, explains the oil rally, here…
““We didn’t see tank tops at Cushing. Instead we’ve seen phenomenal levels of shut-ins,” said Edward Marshall, a commodities trader at Global Risk Management, referring to the act of oil producers turning off wells to choke supply.
A pickup in refiner demand to supply Americans getting back on the road has helped WTI’s recovery. Pipeline flows from Cushing to Midwestern refiners are 400,000 barrels a day higher than they were in early April, according to commodity-market information provider Genscape.“
”Another sign that physical oil markets are returning to normal: The amount of oil being stored and transported at sea has started to unwind. Total floating storage of crude, diesel, gasoline and jet fuel fell to 258 million barrels on May 21, down 7% from the recent peak on 14 May, according to oil analytics company Vortexa.”