Oil Futures Pull Back on Fragile Ceasefire; Stockpiles at 1.4Bn Barrels
BNO•Oil futures fell from four-year highs after a fragile U.S.-Iran ceasefire and mixed signals from the Strait of Hormuz pressured markets. California cut in-state production by policy-driven mandates, boosting foreign imports, and SocGen warns actual global stockpiles are 1.4 billion barrels versus 7.8 billion reported.
1. Oil Futures Retreat from Four-Year Highs
BNO-tracking oil futures slid on Tuesday after U.S.-Iran ceasefire negotiations remained fragile, undermining risk sentiment around the Strait of Hormuz and reversing the rally that pushed prices to their highest levels since 2022.
2. California Production Cuts and Import Surge
California’s new policy mandates slashed in-state crude output, forcing refiners to increase foreign oil imports by a substantial margin and altering domestic supply dynamics critical to BNO performance.
3. Hidden Stockpiles and SocGen Forecast
Reported global inventories of 7.8 billion barrels mask true available supply of roughly 1.4 billion barrels, leading Societe Generale to predict an oil price rebound that could boost BNO valuation.
