The Die Is Cast - Energy And Financial Markets Upset Inevitable

Physical Market Reality Dictates Exceptional Oil Price Spike Coming

The die has been cast.

Julius Caesar upon leading his army across the Rubicon River

---

The latest data from the US Energy Information Agency show that crude oil storage tanks at Cushing Oklahoma, the primary physical delivery point for the CME COMEX oil futures and options market, have dropped to 21.6 million (M) barrels (bbl) as of June 5, 2026.

Recall that Cushing crude oil storage below 20M bbl encounters ‘working tank bottoms’ effectively tapping-out the availability of further Cushing stored crude.

The draw-down of Cushing crude oil storage tanks can be seen in the contrast of the photos below:

Figure 1 - Aerial View Of Cushing, OK Crude Oil Storage Tanks At April 23, 2026 (Left) And June 9, 2026 (Right); source: CNN

Figure 2 - Aerial View Of Cushing, OK Crude Oil Storage Tanks At June 9, 2026; source: CNN

‘Tank Bottoms’, High Price Inflation And Interest Rate Shocks Are On Their Way

Large crude oil tankers move at 12 to 15 kts (22 to 28 kph) or roughly the speed of a bicycle. Even if the Persian Gulf was to immediately see peace, loading and transport of crude oil to markets globally would not see additional delivery to global market destinations for 30 to 60 days.

Further, global logistics analysis firm Kpler notes that if Iran maintains effective control of the Strait of Hormuz, which it will, Persian Gulf crude shipments will only rebuild to 45% of their pre-war shipping volumes.

Figure 3 - Phased Return Of Strait Of Hormuz Transits For Tankers; source: Kpler

To date, the Western price of oil in the financial markets has been suppressed due to limitless availability of digital crude oil futures and other physical factors such as China having reduced oil imports by 5.5M bpd by drawing-down its own inventories as the Iran War has continued.

However, when the Cushing tank bottoms event happens, the pricing of crude is going to become physical switching quickly from pricing with digital futures to a physical barrel delivery supply-demand balance.

At that point we will see a rapid price reset for crude and petroleum products to far higher levels.

No Tweet from President Trump will nor can change that.

The usefulness of continual bait-and-switch Tweeting tactics used by Trump’s office to keep the oil market wrong-footed and the world’s bubble economy and financial markets, juiced to stratospheric levels by decades of intentionally loose money policy by the world’s central banks, inflated as they drifted toward a precipice over which lies chaos, will be terminated. The world’s energy markets will of necessity become physically balanced by supply/demand forces.

Trump’s owners who dictate his actions have decided to terminate the global everything bubble created by central bankers over decades and the impact of the global oil and petroleum shortage will serve as the proximal cause of that collapse. Bubble blowing by central banks for decades is the ultimate cause - you will hear almost nothing about that.

Attacking Iran, disrupting global energy and resource flows, spiking price inflation, and sending a shock interest rate spike through the bond and financial markets dictate that the attack on Iran was unthinkable. As central bankers and bankers scurry for cover, it is exactly what they needed.

Best regards,

David Jensen